US lawmakers have questioned TikTok CEO Shou Zi Chew about data security and harmful content, as some push to ban the popular short-video app nationwide.
A native of Singapore, Chew told lawmakers that TikTok prioritizes user safety and, in his bid to avoid a ban, downplayed the app’s ties to China.
Republican and Democratic lawmakers have vigorously challenged Chew on issues including TikTok’s content moderation practices, its data security plans and past spying on journalists.
This is a look at some of the concerns about TikTok and its use.
Why does Washington say that TikTok is a threat?
TikTok, which has more than 150 million US users, is a wholly owned subsidiary of Chinese technology company ByteDance Ltd., which appoints its executives.
ByteDance is based in Beijing, but is registered in the Cayman Islands, as is common for privately owned Chinese companies. Its offices are in the Haidian district of northwest Beijing, home to major universities and a hub for tech startups.
Founded by Chinese entrepreneur Zhang Yiming in 2012, ByteDance is said to be valued at around $220 billion, nearly half its 2021 valuation of $400 billion. they have lost value since the ruling Communist Party tightened control over the industry with crackdowns on antitrust and data security.
Western governments fear Chinese authorities could force ByteDance to hand over TikTok data on American users, exposing sensitive information. China denies asking its companies to hand over data from abroad, and TikTok insists it never has and would not.
ByteDance claims that 60% of its shares are owned by non-Chinese investors, such as US investment firms Carlyle Group and Kohlberg Kravis Roberts and Japan’s SoftBank Group. The employees own 20% and their founders the remaining 20%.
Some details of the relationship between TikTok and ByteDance remain unclear to those unfamiliar.
What Chinese rules worry Western governments?
China’s 2017 National Intelligence Law states that “any organization” must assist or cooperate with state intelligence work, while a 2014 Counter-Intelligence Law notes that “relevant organizations…cannot refuse” to collect evidence for an investigation.
Since ByteDance, which owns TikTok, is a Chinese company, you may have to comply with these rules if you are asked to hand over data by Chinese authorities.
Laws and regulations are just one aspect of the general control of the Communist Party. There are no legal limits to the party’s powers. Authorities can also threaten to cancel licences, conduct regulatory or tax inquiries, and use other sanctions to force Chinese and foreign companies operating in China to comply with their requests.
The party usually gives orders using what is known in English as “window guidance” or informal communication in private. He has cracked down on tightening control over tech companies and forcing them to align with his goals.
The Chinese government has also sought more direct control over companies by gaining seats on boards of directors.
Is TikTok obliged to provide data at the request of the Chinese government, despite the “Texas project”?
TikTok has promised to protect the data of American users by storing it on servers operated by a third-party contractor, Oracle Corp., in what is known as “Project Texas.” Chew, the CEO of TikTok, said that all new US user data is stored in the United States and that the company is scheduled to finish this year removing the data of its oldest US users from non-Oracle servers.
The fear is that ByteDance will have to hand over information it obtained from TikTok if ordered to do so by Chinese authorities, but Chew says Project Texas will keep US data out of China’s hands.
ByteDance disclosed in December that four employees gained access to data on reporters and people connected to them while investigating how information about the company was leaked. Chew told lawmakers that China-based ByteDance employees may still have access to some US data, but that won’t be the case once the Texas Project is complete.
In November, TikTok’s head of privacy for Europe revealed that some employees in China had access to information about users in Britain and the European Union.
Does the communist party influence ByteDance?
At Thursday’s hearing, US lawmakers repeatedly tried to pressure Chew to answer whether ByteDance had ties to China’s communist government. Chew dodged questions about whether the staff and top executives are members of the Communist Party.
“I know the founder himself is not a member of the Communist Party, but we don’t know the political affiliation of our employees because that’s not something we ask,” Chew said.
When asked if ByteDance was actually controlled by the Chinese Communist Party, Chew denied it.
After a lawmaker said the Communist Party has a “golden share” in ByteDance that allows it to control a seat on ByteDance’s board of directors, Chew replied: “That’s not correct.”
In China, so-called golden shares held by official investment funds are a way for Beijing to gain greater oversight of businesses by giving them a 1% stake in companies.
Hew pushed back when lawmakers claimed the Communist Party owns shares in ByteDance giving it a vote on how the company is run. “The Communist Party does not have the right to vote in ByteDance,” Chew maintained.
ByteDance’s main Chinese subsidiary is the licensee of some of its video and information platforms that only operate in the Chinese market.
Official investment funds have also bought 1% of the Chinese subsidiary of Weibo Corp., the country’s most popular microblogging platform, and also of Alibaba’s domestic subsidiaries.
What is Douyin and what is its relationship with TikTok?
DouYin is ByteDance’s short video platform for the Chinese market. It’s similar to TikTok, but its content is restricted by Chinese censorship rules that ban material deemed subversive or pornographic, a point emphasized by US lawmakers concerned about harmful content viewed by young people.
The Communist Party’s extensive internet filters prevent most users in China from viewing TikTok. ByteDance has claimed that TikTok has “no affiliation” with Beijing ByteDance Technology Co., the subsidiary that operates DouYin; Toutiao, short video and news platform, and other services.
What was the reaction in China to the testimony of the CEO of TikTok in Washington?
Most of the reactions on social media in China were sympathetic to Chew, with praise for the way he dealt with hostile questions thrown at him.
Comments on the microblogging platforms Weibo and Douyin criticized US lawmakers for asking Chew tricky questions. Many commenters used a Chinese saying that goes “if you want to accuse someone, there is always a way”.
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
