Chinese government role could determine TikTok-White House negotiations: Report
Christopher Hutton
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The Chinese government’s interests in TikTok could play a determining role in negotiations to have it continue in the U.S. despite fears regarding its ties to the Chinese Communist Party, according to people involved in the matter.
The social app has been negotiating with the Commerce Department’s Committee on Foreign Investment in the U.S. for more than two years to find an arrangement that would assuage concerns that the CCP can access its data or influence its operations. It has reportedly proposed an agreement allowing the company to store U.S. data on local servers while taking actions enabling the company to operate in the United States without a total ban.
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But TikTok’s parent company, ByteDance, has grown hesitant about the talks due to concerns about the possibility that the CCP could oppose such a deal, specifically if it required transferring the app’s key algorithms to U.S. entities, according to the Wall Street Journal, which cited people familiar with the matter.
CCP officials prefer the company’s current proposal of storing U.S. data on Oracle servers and having it monitored by a team, as opposed to the White House’s push for the company to sell or separate the technology from China. The company is also worried that Beijing leaders could intercede and veto any deals made to sell the app outside China.
“Under our proposed agreement with [CFIUS], no technology will change hands,” TikTok said in a statement. “We are hopeful that this arrangement will allow us to address national security concerns while complying with Chinese export regulations.”
The company has previously proposed creating systems for monitoring TikTok’s algorithm, continuing to run all U.S. TikTok traffic through the Oracle server system, and hiring monitors.
The company is facing increased pressure from lawmakers, including multiple proposed pieces of legislation that ban the app from operating within the United States. Several liberal lawmakers have pushed for these bills in recent days, including Sen. Angus King (I-ME), Sen. Michael Bennet (D-CO), and Intelligence Committee Chairman Mark Warner (D-VA). Previously, Republicans had been more skeptical of TikTok.
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TikTok CEO Shou Zi Chew is set to speak before the House Energy and Commerce Committee on March 23.
The Foreign Affairs Committee is expected to vote on a bill next month that could ban the app outright in the U.S.