House lawmakers are expected to vote around 10 a.m. Wednesday on legislation that would force ByteDance, the Chinese internet company, to sell the wildly popular social media app TikTok.
The vote will be the latest development in a years-long cold war between the United States and China over who controls valuable technology from computer chips to artificial intelligence. Lawmakers and the White House have raised concerns that Chinese ownership of TikTok poses a national security risk because Beijing could use the app to access Americans’ data or run a disinformation campaign.
If the House passes the bill, it faces an uncertain future in the Senate. Sen. Chuck Schumer of New York, the Democratic leader, has not yet committed to bringing it to a vote.
See what you need to know about the account.
Why did the Members of Parliament support the bill?
Many are concerned that the Chinese government could demand Americans’ personal data from ByteDance and that, under Chinese law, ByteDance would have to comply.
Lawmakers including Rep. Mike Gallagher, R-Wis., who sponsored the bill, and Sen. Mark Warner, D-Virginia, also say China could use TikTok’s powerful algorithm to feed its users political propaganda. Christopher A. Wray, director of the Federal Bureau of Investigation, and Avril Haines, director of national intelligence, have highlighted the concerns over the past year.
The bill, which Mr. Gallagher introduced with Raja Krishnamoorthi, an Illinois Democrat, had bipartisan support.
TikTok says the concerns are unfounded. He notes that about 60 percent of the company is owned by global institutional investors, including financial giants Susquehanna International Group and BlackRock. It also says three Americans are on its five-member board. According to the company, it has spent more than $1 billion on a plan that stores sensitive US user data domestically on servers operated by Oracle, the US cloud computing company.
How would the bill force ByteDance to sell TikTok?
The bill essentially says that TikTok must be sold within six months to a buyer that satisfies the US government. The sale should guarantee that ByteDance no longer has any control over TikTok or its algorithms that recommend content to users.
If ByteDance cannot or refuses to sell TikTok, it would be illegal for app stores and web hosting companies to distribute or update the app in the United States. The Justice Department could punish any company that works with TikTok or offers its app for download.
Would it be easy for ByteDance to sell TikTok?
Probably not.
With 170 million users in the United States alone, TikTok would come with a high price tag that few companies or individuals could afford. If forced to sell, it’s also unclear whether ByteDance would put the app’s entire global footprint up for sale or just its United States operation.
Some of the companies that could potentially afford to buy TikTok are tech giants like Microsoft, Google and Meta, the owner of Facebook and Instagram. But the Biden administration has repeatedly tried, using antitrust laws, to prevent these companies from getting bigger.
Even if ByteDance could find a buyer for TikTok, China may not allow the sale. In 2020, when US officials first tried to force the sale of TikTok, Beijing placed export restrictions on technology that sounded similar to TikTok’s content recommendation algorithm. Last year, Beijing said it would oppose a sale.
“You’re not going to be able to force ByteDance to divest,” said James Lewis, senior vice president at the Center for Strategic and International Studies.
What is the ban policy?
Support for a ban has been bipartisan, with Republicans and Democrats both concerned about China’s influence.
But in a surprise move, former President Donald J. Trump opposed the TikTok legislation in recent days. This was a reversal from his position on the app in 2020, when he tried to ban it.
“Trump’s opposition is a major new obstacle to this bill becoming law,” said Paul Gallant, policy analyst for TD Cowen. “A lot will depend on whether he goes to the mat with this TikTok account like he did with the border security bill.”
Free speech groups have also opposed the bill, saying they worry a ban would shut down expression.
What technically needs to happen for an app to be banned from a country?
If the bill passes the House and Senate and is signed into law by the president, it would impose civil penalties on app stores, such as those run by Apple and Google, if they distribute or update TikTok.
The app is already on millions of phones in the United States, but the restriction on updates is likely to degrade users’ ability to access it.
This will be supplemented by a measure that prohibits web hosting companies from helping distribute the app.
