TikTok May Be Forced To Split From Its Chinese Parent Firm ByteDance To Avoid A US Ban

The top leadership of the popular social media app TikTok may be forced to make a very difficult decision. This includes exploring various difficult decisions such as a potential split from the firm’s Chinese parent company ByteDance.

The news comes as the famous app is under great scrutiny from American lawmakers who are calling for a complete ban of the platform from the US. Both the Senate and Congress are seeking to attain special executive powers that President Biden can use to call for the immediate ban of the platform in the country, citing threats to national security.

This insider report comes from the likes of Bloomberg but it’s still unconfirmed as the decision is being dubbed far from certain and would need approval from the Chinese capital city of Beijing.

For those who may not be aware, TikTok has been in legal limbo for quite some time now as the American Government and Committee for Foreign Investment seek a review on security regarding the highly concerning matter.

The fact that the app has a Chinese parent firm in charge of it has a lot of concerns as the reason for the app to be banned had to do with the likes of direct transfer of data from the US to Chinese government officials. Special emphasis was put on the likes of China’s Communist Party and the safety of the Americans involved.

Hence, indulging in the likes of the separation of the app from ByteDance may result in the company being sold off or even going public through various offerings. Still, the decision seems to be a last resort move and one that would only be allowed to go forward as a final resort when all other negotiations fail.

For now, both TikTok and its parent firm are not responding to comments on the matter.

The discussion of a potential ban taking place regarding the app’s ban due to links with China’s Government carrying out surveillance against American citizens without their prior knowledge dates back to the era of the Trump Administration.

But it has now picked up more pace than ever after a new report that was published in 2022 showed how China was gaining access to sensitive data belonging to Americans. It alleged TikTok as being a spy tool to conduct surveillance on a few selected citizens including journalists hailing from Forbes.

Hence, it did not take too much time for a number of states to carry out a ban on the platform, especially across those devices being used by officials working in the White House. Moreover, President Biden even signed a new executive bill in the month of December that banned the app on devices owned by Federal officials.

Clearly, the US is very concerned about China conducting surveillance and it vows to do everything it can to prevent that from happening. Therefore, we might be seeing this potential split of TikTok’s American division from ByteDance happening soon. But again, only time can tell how the cards really do end up playing out.

Read next: TikTok Received 26% of App Revenue From the US, Beating Out Instagram and Facebook
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