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Friday, March 24, 2023
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Technology|Biden’s Options on TikTok Narrow After Beijing Pushes Back

https://www.nytimes.com/2023/03/23/technology/biden-tiktok-options.html
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TIKTOK SECURITY CONCERNS

 * C.E.O. Testifies in Congress
 * U.S. Pushes TikTok to Sell
 * U.K. Bans App on Government Devices
 * TikTok Bans, Explained

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BIDEN’S OPTIONS ON TIKTOK NARROW AFTER BEIJING PUSHES BACK

China’s opposition to a sale of the app leaves the president to challenge that
stand or consider seeking a ban, which would face its own obstacles.

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The White House has pushed for a sale of Tiktok, concerned that the app poses a
national security risk by giving China access to the personal data of American
users.Credit...Haiyun Jiang/The New York Times


By David McCabe and Chang Che

March 23, 2023

WASHINGTON — The Biden administration recently told TikTok that it wanted the
app’s Chinese owners to sell the app or face a possible ban in the United
States. But that plan hit a roadblock on Thursday, when Beijing said it would
oppose a sale.

The announcement scrambled the debate over the future of the app, leaving the
White House with few if any clear options.

President Biden’s narrow menu now includes trying to ban the app — the other
side of the administration’s threat. But that would be very difficult without
congressional help. Or, experts said, he could try to push a sale anyway,
through a government body that vets foreign companies, essentially daring
Beijing to make good on its opposition.

“He has to make a choice: Does he want to have a confrontation with China over
TikTok?” said James A. Lewis, a senior vice president at the Center for
Strategic and International Studies.



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A Chinese Commerce Ministry spokeswoman said at a news conference on Thursday
that the country would “firmly oppose” the sale of the app. Forcing such a
transaction would “seriously undermine the confidence of investors from various
countries, including China, to invest in the United States,” she added.


TIKTOK UNDER SCRUTINY


THE MASSIVELY POPULAR VIDEO APP IS FACING PRESSURE AMID CONCERNS OVER THE
HANDLING OF USERS’ DATA.

 * Finding a Buyer: The Biden administration is pushing ByteDance, the Chinese
   company that owns TikTok, to sell the app or face a possible ban. But there
   are many complications to finding a suitor.
 * Federal Inquiry: The Justice Department is said to be investigating the
   surveillance of American TikTok users, including several journalists who
   cover the tech industry, by ByteDance.
 * A New Defense: Keeping a low profile in Washington has not paid off for
   TikTok, which now faces regulatory pressure on many fronts. So the company is
   starting to speak out.

Her rebuke of the Biden administration arrived just hours before TikTok’s chief
executive testified in front of Congress for the first time. The executive, Shou
Chew, faced roughly five hours of harsh questioning from lawmakers of both
parties about China’s ties to the company, data privacy and the app’s effects on
children. Many lawmakers cited the Chinese statement as evidence that the app
could be subject to Beijing’s sway.

The administration has long feared that Beijing could compel TikTok to hand over
the sensitive data of American users, or use its powerful content recommendation
algorithm to spread propaganda. It has been negotiating a deal that would allow
the app to continue operating in the United States if it stored its U.S. user
data on domestic servers.


Image

China would “firmly oppose” a sale of TikTok, said a Commerce Ministry
spokeswoman, Shu Jueting, at a news conference in Beijing.Credit...Kyodo, via
Associated Press


But senior administration officials have balked at that proposal, and recently
made it clear that they would rather see the app’s Chinese owner, ByteDance,
sell it.



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Now, the administration will need to weigh whether to push banning the app,
cutting it off from its 150 million American users. But that is legally fraught:
Federal courts ruled that President Donald J. Trump didn’t have the authority to
ban TikTok from Apple’s and Google’s app stores.

This month, the White House endorsed a bipartisan Senate bill that would give
the Commerce Department the clear power to ban any app that endangered
Americans’ security. If it passes, the administration is likely to be on
stronger legal ground in banning TikTok.

The administration could also revisit the deal it had negotiated for TikTok to
store the data of its U.S. users on Oracle servers in America. Oracle would also
monitor how TikTok’s algorithm recommended content, as a possible hedge against
the app’s being used to spread Chinese government disinformation and propaganda.

But that proposal was met with skepticism from some of the administration’s top
players, including at the Justice Department and in the White House, leading the
administration to push for a sale.

A spokeswoman for the White House did not immediately respond to a request for
comment.

Handling TikTok has grown only more complicated since Mr. Trump urged ByteDance
to sell it in 2020. Afterward, China revised a list of protected technologies,
which analysts say would require ByteDance to obtain government permission to
sell the app to an American buyer. TikTok’s most valuable technology is its
recommendations algorithm, the source of its success attracting and retaining
users around the world.



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In addition, the court rulings against banning TikTok from the app stores took
away crucial leverage that the White House had used to get ByteDance to consider
selling.

Any decision to remove the app, either somehow banning it in the United States
or blocking further downloads, may also be more politically fraught for Mr.
Biden than it would have been for Mr. Trump. TikTok has millions more users in
the United States than it had in 2020.

But the roughly five-hour hearing with Mr. Chew on Thursday showed that
political demand for action is building in Washington. About four dozen
lawmakers took aim at Mr. Chew, many accusing his company of close ties to the
Chinese government.

He tried to distance himself and TikTok from China, but lawmakers were vocal in
their skepticism.

“When we spoke a couple of weeks ago, you indicated interest in taking steps to
earn our trust,” said Representative Lori Trahan of Massachusetts, a Democrat.
“And, to me, it hasn’t happened today so far.”

Repeatedly, Mr. Chew told lawmakers that the company’s plan to keep user
information in the United States on servers operated by Oracle, which it calls
Project Texas, would address their concerns. But they did not seem to buy it.

“With all due respect, the ‘No company can be perfect’ line has been used way
too much today,” said Representative Angie Craig, Democrat of Minnesota.
“Clearly, in the three-plus hours you’ve been before us today, what you’re
saying about Project Texas just doesn’t pass the smell test.”

David McCabe reported from Washington, and Chang Che from Seoul.







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