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☆ TikTok CEO: App has never shared US data with Chinese government
▼ + stars: | 2023-03-22 | by ( David Shepardson | ) www.reuters.com time to read: +4 min

"TikTok has never shared, or received a request to share, U.S. user data with the Chinese government. TikTok's critics fear that its U.S. user data could be passed on to China's government by the app and prompted growing calls to ban the app by U.S. lawmakers. The video app has spent more than two years in talks with CFIUS seeking to reach an agreement on protecting U.S. user data. TikTok has formed a special-purpose subsidiary, TikTok U.S. Data Security (USDS), that currently has nearly 1,500 full-time employees and contracted with Oracle (ORCL.N) to store TikTok’s U.S. user data. "Oracle has already begun inspecting TikTok’s sourcecode and will have unprecedented access to the related algorithms and data models," Chew's testimony said.

Courts blocked a prior bid by the Trump administration to ban the app in part on the grounds that such a move violated free speech protections. Courts struck down former President Donald Trump's bid to block TikTok in 2020 with an executive order that granted the Commerce Department similar authorities as the RESTRICT act. But the bill will likely provide no immediate solutions for those calling for a ban on the app. Some experts said using the new legal tools to ban TikTok could still invite First Amendment challenges. "And there will most likely be a legal challenge if its used to ban TikTok."

CNN —Nearly two-and-a-half years after the Trump administration threatened to ban TikTok in the United States if it didn’t divest from its Chinese owners, the Biden administration is now doing the same. The new directive comes from the multiagency Committee on Foreign Investment in the United States (CFIUS), following years of negotiations between TikTok and the government body. “If protecting national security is the objective, divestment doesn’t solve the problem,” TikTok spokesperson Maureen Shanahan said in a statement. TikTok is really only a national security risk insofar as the Chinese government may have leverage over TikTok or its parent company. China has national security laws that require companies under its jurisdiction to cooperate with a broad range of security activities.

☆ Venture investors, U.S. lawmakers join forces to fight Tiktok & Chinese influence: WSJ
▼ + stars: | 2023-03-17 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

A star-studded array of Silicon Valley venture investors have joined forces with a bipartisan group of U.S. lawmakers as part of a working group that has one aim: Combatting China's influence in the U.S. technology industry, the Wall Street Journal reported Friday. The consortium is named the Hill & Valley Forum, the Journal reported, a nod to the group's bicoastal origins. The Forum will host a dinner ahead of TikTok CEO Shou Zi Chew's Congressional testimony next week, with speakers including prominent venture capitalists Peter Thiel and Vinod Khosla, the Journal reported. Now, lawmakers, venture investors, and lobbyists are pushing for the government to ban or curtail the app's influence, citing a potent threat from the Chinese government. The ultimatum came weeks after lawmakers urged the Committee to complete its yearslong probe into TikTok.

The Biden administration and CFIUS are pushing for a sale of TikTok in the US. The Chinese government could also block a TikTok sale outright before bidding kicks off. But the list of companies that would actually consider buying TikTok is small, experts told Insider. "I think Microsoft would be one of the only big money, big company possibilities." Ultimately, separating TikTok's US operations, whether in a sale to a big tech firm or a spin off, is complicated.

☆ TikTok's potential U.S. ban presents host of questions for app stores, internet companies and the government
▼ + stars: | 2023-03-17 | by ( Lauren Feiner | ) www.cnbc.com time to read: +7 min

The TikTok logo is displayed outside TikTok social media app company offices in Culver City, California, on March 16, 2023. related investing news What a potential TikTok ban could mean for Club holding Meta Platforms It's not an issue yet, as there are still some ways a TikTok ban could be avoided or accessed legally in the U.S. Should the U.S. ban TikTok, the mechanics on what happens from there get murky. And the app stores controlled by Apple and Google are the primary places for consumers to download the TikTok app. Under Chinese law, companies can be required to hand over internal information to the government for supposed national security purposes.

☆ TikTok confirms the U.S. has threatened ban if Chinese parent ByteDance doesn't sell stake
▼ + stars: | 2023-03-16 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

TikTok spokesperson Brooke Oberwetter told Reuters that the company had recently heard from the U.S. Committee on Foreign Investment in the United States (CFIUS). The committee told ByteDance to sell its shares in TikTok, or the app could face a U.S. ban. Washington asked TikTok's Chinese parent company ByteDance to divest its stake in the short video app or face a possible ban in the U.S., CNBC has confirmed. TikTok has repeatedly stated that U.S. user data is not stored in China where those laws apply. A TikTok spokesperson said divesting the business would not resolve the U.S.'s concerns.

☆ Biden administration demands TikTok’s Chinese owners spin off their share or face US ban
▼ + stars: | 2023-03-15 | by ( Brian Fung | ) edition.cnn.com time to read: +4 min

CNN —The Biden administration has threatened to ban TikTok from the United States unless the app’s Chinese owners agree to spin off their share of the social media platform, TikTok acknowledged Wednesday evening. “If protecting national security is the objective, divestment doesn’t solve the problem,” TikTok spokesperson Maureen Shanahan said in a statement. But so far, there has been no evidence that the Chinese government has actually accessed TikTok user data, and no government has enacted a broader ban targeting TikTok on personal devices. TikTok has sought to address policymakers’ concerns with voluntary technical and bureaucratic safeguards that it says will help ensure US user data may only be accessed by US employees. Part of that initiative, which the company calls Project Texas, involves storing personal data with the US cloud giant Oracle.

☆ A TikTok ban or forced sale could lead to major collateral damage for US tech companies like Apple and Chinese apps like Shein
▼ + stars: | 2023-03-15 | by ( Dan Whateley | ) www.businessinsider.com time to read: +9 min

"A big Chinese balloon in the sky and millions of Chinese TikTok balloons on our phones. But US tech companies that rely on data collection for advertising sales or other business practices have fought to curb such regulations. Still, efforts by members of Congress to pass federal legislation around data privacy, such as the American Data Privacy and Protection Act, have faced an uphill battle. Apple's 2021 user privacy changes stunted ad revenue at Facebook and Snapchat-maker Snap, for example. But blocking companies from gathering private information from users could also be a more effective path to protecting Americans while maintaining an avenue for Chinese companies to participate in the global economy.

☆ U.S. threatens TikTok ban if Chinese owners don't sell stake - WSJ
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: 1 min

March 15 (Reuters) - The Committee on Foreign Investment in the United States (CFIUS) is asking TikTok's Chinese owners to sell their stakes in the short-form video app or face a possible ban in the United States, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Reporting by Eva Mathews in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ TikTok could be banned in the US unless the app’s Chinese owners sell their stakes. The Biden administration is demanding it, WSJ reports.
▼ + stars: | 2023-03-15 | by ( Lakshmi Varanasi | ) www.businessinsider.com time to read: +5 min

The US is threatening TikTok's Chinese owners with a US ban if they don't sell their stakes, according to the WSJ. TikTok has responded saying the forced sale won't address the perceived national security risk. Still, TikTok's leadership is considering splitting from ByteDance to work around the national security concerns, Bloomberg reported. In December, the Senate voted to ban TikTok on government devices, and several states have since introduced full or partial bans of the app. Universities have also made moves to ban TikTok.

☆ Biden’s TikTok Dilemma: A Ban Could Hurt Democrats More Than Republicans
▼ + stars: | 2023-03-13 | by ( John D. Mckinnon | ) www.wsj.com time to read: 1 min

WASHINGTON—Many Republicans and some Democrats are clamoring for action to address a perceived security risk from Chinese-owned TikTok, but one political leader has been largely silent: President Biden. Mr. Biden and his aides have demurred when asked about potential actions to restrict TikTok, saying they are awaiting recommendations from the Committee on Foreign Investment in the U.S., or Cfius.

☆ Rubio wants to block Ford from tax breaks for using Chinese battery technology
▼ + stars: | 2023-03-10 | by ( ) edition.cnn.com time to read: +2 min

US Senator Marco Rubio on Thursday introduced legislation that takes aim at Ford’s deal to use technology from Chinese battery company CATL as part of the automaker’s plan to spend $3.5 billion to build a battery plant in Michigan. No other entity will get US tax dollars for this project.”Last month, Rubio asked the Biden administration to review Ford’s deal to use technology from CATL. Rubio called for an immediate Committee on Foreign Investment in the United States (CFIUS) review of the licensing agreement between Ford and CATL. The $430 billion IRA imposes restrictions on battery sourcing and is designed to wean the United States off the Chinese supply chain for electric vehicles (EVs). The IRA will eventually bar credits if any EV battery components were manufactured by a “foreign entity of concern,” in a provision aimed at China.

☆ Rubio takes aim at planned Ford US battery plant using Chinese technology
▼ + stars: | 2023-03-09 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

Senator Marco Rubio on Thursday introduced legislation that takes aim at Ford Motor's (F.N) deal to use technology from Chinese battery company CATL (300750.SZ) as part of the automaker's plan to spend $3.5 billion to build a battery plant in Michigan. Rubio, the top Republican on the Intelligence Committee, introduced legislation that would block tax credits for electric vehicle batteries produced using Chinese technology, saying it would "significantly restrict the eligibility of IRA tax credits and prevent Chinese companies from benefiting." Last month, Rubio asked the Biden administration to review Ford's deal to use technology from CATL. Rubio called for an immediate Committee on Foreign Investment in the United States (CFIUS) review of the licensing agreement between Ford and CATL. The $430 billion IRA imposes restrictions on battery sourcing and is designed to wean the United States off the Chinese supply chain for electric vehicles (EVs).

☆ The Biden administration is shifting its approach to TikTok
▼ + stars: | 2023-03-08 | by ( Jeremy Diamond | ) edition.cnn.com time to read: +3 min

CNN —The White House’s endorsement of a bill that would give the Biden administration new powers to restrict or ban TikTok in the United States marks a significant shift in the White House’s approach to the Chinese-owned social media app. It’s also a move that the White House has been actively mulling for several weeks while working with lawmakers on Capitol Hill to draft the legislation, Democratic and Republican aides said. The bill does not target TikTok specifically for a ban. The bill was drafted in close consultation with the White House’s National Security Council as well as the Commerce, Treasury and Justice Departments, according to aides familiar with the process. “A U.S. ban on TikTok is a ban on the export of American culture and values to the billion-plus people who use our service worldwide.”– CNN’s Brian Fung contributed to this report.

☆ Push to give Biden new powers to ban TikTok moves ahead in Congress
▼ + stars: | 2023-03-07 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

[1/2] TikTok app logo is seen in this illustration taken, August 22, 2022. A White House spokeswoman told Reuters the administration is "working with Congress" but declined to say if it would endorse the Senate legislation. Last week, the House Foreign Affairs Committee voted along party lines on a bill sponsored by Representative Michael McCaul to give Biden the power to ban TikTok after then President Donald Trump was stymied by courts in 2020 in his efforts to ban TikTok and WeChat. TikTok and CFIUS have been negotiating for more than two years on data security requirements. TikTok said it has spent more than $1.5 billion on rigorous data security efforts and rejects spying allegations.

The six countries included in the bill are China, Russia, Iran, North Korea, Venezuela and Cuba, Warner said. "This competition with China around who dominates technology domains, that really is where the nexus of national security lies going forward," Warner said. Warner said the bill is not solely meant to address TikTok, and rather should create a "systemic approach" that prevents the need for one-off actions. "A U.S. ban on TikTok is a ban on the export of American culture and values to the billion-plus people who use our service worldwide. We hope that Congress will explore solutions to their national security concerns that won't have the effect of censoring the voices of millions of Americans."

☆ TikTok data collection, influence operations potential draw U.S. NSA concern
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Elizabeth FrantzWASHINGTON, March 7 (Reuters) - U.S. National Security Agency Director Paul Nakasone on Tuesday expressed concern during congressional testimony about Chinese-owned video app TikTok's data collection and potential to facilitate broad influence operations. Asked by Republican Senator Tommy Tuberville about any concerns he has about TikTok's influence on American children, Nakasone told a Senate Armed Services Committee hearing, "TikTok concerns me for a number of different reasons." Nakasone ended his comments by asserting that the TikTok platform could enable sweeping influence operations. The NSA, part of the Defense Department, is the agency responsible for U.S. cryptographic and communications intelligence and security. CFIUS and TikTok have been in talks for more than two years aiming to reach a national security agreement.

U.S. Bankruptcy Judge Michael Wiles approved Voyager's restructuring plan, which is built around the Binance.US acquisition, at a hearing in New York. Binance has agreed to pay $20 million in cash to Voyager, and to take on crypto assets deposited by Voyager customers. The customers' crypto assets, valued at $1.3 billion in February, account for the bulk of the deal's valuation, according to Voyager. Wiles approval of Voyager's plan allows it to begin transferring customer accounts to Binance, but Voyager could still walk away from the deal. Palo Alto-based Binance.US has said it is "fully independent" of its international parent company Binance, which is owned by Chinese-born and Singapore-based Changpeng Zhao.

The SEC, which has objected to the sale, is currently investigating whether Voyager's crypto lending business involved the sale of unregistered securities. When pressed by Wiles as to whether the SEC believed that the Voyager sale violated U.S. securities laws, SEC attorney William Uptegrove did not have a definite answer. The Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager's customers to Binance.US's crypto exchange. The crypto assets deposited by Voyager customers account for the bulk of the deal's valuation, according court documents. CFIUS did not formally object to the Binance sale, but it warned that its ongoing review of national security concerns could end up blocking the deal.

☆ TikTok sets automatic one-hour screen time limit for teens
▼ + stars: | 2023-03-01 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

TikTok said Wednesday it will implement an automatic 60-minute screen-time limit for all users under the age of 18. Teens will be able to opt out of the feature if they want, but TikTok said that the app will prompt teens to set a limit if they spend "more than 100 minutes on TikTok in a day." TikTok is taking steps to curb screen time for its younger users as it stares down growing scrutiny from regulators and lawmakers over its security and the safety of children on the platform. A study from the Pew Research Center last August found 67% of American teenagers used TikTok, with 16% of all teens saying they used it "constantly." TikTok parent ByteDance faces a probe from the Committee on Foreign Investment in the United States, also known as CFIUS, over national security concerns.

WASHINGTON — The U.S. House Foreign Affairs Committee voted Wednesday to advance a bill that would grant President Joe Biden the authority to ban TikTok, the Chinese social media app used by more than 100 million Americans. Yet even as Democrats objected, many of them said they did so regretfully, and they would have much preferred to support a version of McCaul's TikTok ban. "My bill empowers the administration to ban TikTok or any other software application that threatens U.S. national security." "It would be unfortunate if the House Foreign Affairs Committee were to censor millions of Americans," TikTok spokeswoman Brooke Oberwetter told CNBC in an email Monday. On Monday, the Biden administration released new implementation rules for a TikTok ban that applies only to federal government-owned devices, which was passed by Congress in December.

☆ ACLU urges US lawmakers not to ban TikTok, citing free speech
▼ + stars: | 2023-02-28 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

A TikTok ban would "limit Americans’ political discussion, artistic expression, free exchange of ideas — and even prevent people from posting cute animal videos and memes," the ACLU said in a letter to lawmakers. Earlier this month, Biden said he was not sure if Washington would ban TikTok, which is owned by Chinese company ByteDance. Representative Michael McCaul, chair of the House Foreign Affairs Committee, in a statement on Monday, said the legislation "empowers the administration to ban TikTok or any software applications that threaten U.S. national security. TikTok, he said, "allows (China) to manipulate and monitor its users while it gobbles up Americans' data to be used for their malign activities." TikTok officials have been on Capitol Hill this month trying to convince lawmakers of its efforts to protect data security.

☆ US House Democrat opposes giving Biden power to ban TikTok
▼ + stars: | 2023-02-28 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

WASHINGTON, Feb 28 (Reuters) - The top Democrat on the House Foreign Affairs Committee said on Tuesday he opposes a Republican bill that would give President Joe Biden the power to ban Chinese-owned social media app TikTok and other apps. TikTok and CFIUS have been negotiating for more than two years on data security requirements. "We need to address TikTok," Meeks said. The American Civil Liberties Union urged Congress not to ban TikTok, saying it would violate the free speech rights of millions of Americans. This month, Biden said he was not sure if Washington would ban TikTok.

☆ High-ranking DOJ official says she 'would not advise' consumers to use TikTok, citing security concerns
▼ + stars: | 2023-02-16 | by ( Lauren Feiner | ) www.cnbc.com time to read: +2 min

A high-ranking official at the Department of Justice on Thursday warned against the use of the popular short-form video app TikTok, due to security concerns stemming from its ownership by a Chinese company, ByteDance. Monaco pointed to what she called "the perils of Chinese companies being subject to Chinese national security laws." That process will determine if the U.S. can reach a risk mitigation agreement with TikTok that can satisfy the national security fears. As of late last year, those discussions were delayed due to ongoing concerns over the app's ownership, according to The Wall Street Journal. Monaco said in her prepared remarks that CFIUS has increasingly had an eye toward transactions that can impact data security, cybersecurity and supply chains.

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