According to people familiar with the situation, the US has instructed the Chinese owners of the video-sharing app TikTok to sell their shares or risk having the app banned in the US.
The Depository Division is driving the conversation however the Board on Unfamiliar Interest in the US, or Cfius, and made the interest as of late to Tiktok’s proprietor, ByteDance Ltd., individuals said. When discussing private discussions, they requested anonymity.
Bloomberg News reported on Tuesday that TikTok’s leadership has been discussing the possibility of separating from its Chinese parent, ByteDance Ltd., in order to assist in addressing concerns regarding risks to national security. According to one individual, TikTok’s owners might be able to maintain some form of ownership through a passive structure.
According to a statement released by TikTok, assuming safeguarding public safety is the goal, divestment doesn’t take care of the issue, and a change in ownership would not impose any new restrictions on data flows or access. The transparent, US-based protection of US user data and systems with robust third-party monitoring, vetting, and verification that we are already implementing is the best way to address concerns about national security.
Cfius is conducting a national security review of the company. Last year, the company agreed to modify a plan it calls Project Texas. The proposal calls for appointing a government-approved oversight board and bringing in the American technology giant Oracle Corp. to host US user data and evaluate its software. The majority of the moves have already begun.