TikTok’s U.S. Survival: Renewed Negotiations, Security Concerns, and Political Implications

• TikTok

ByteDance, the parent company of TikTok based in China, and the U.S. government have resumed negotiations over the video app's future in the United States. This development comes six months after the Biden administration ended previous discussions, presenting ByteDance with two choices: sell TikTok or wait for a potential nationwide app ban through congressional legislation.

The fate of TikTok in the U.S. is again under negotiation, shedding light on political dynamics, cybersecurity concerns, and the power of social media.

However, these talks have been reignited despite doubts about the administration's authority to ban TikTok independently and indications that the proposed law granting this authority has hit a roadblock in Congress. This renewed engagement also underscores the diminishing appetite among politicians to risk a public backlash by taking on a social media titan that many hope could boost their chances in the upcoming elections.

The government still needs to shift its stance on divestiture demand officially. Nonetheless, teams from ByteDance and the Committee on Foreign Investment in the United States (CFIUS), which oversees the U.S. operations of foreign businesses, met at the Treasury Department in Washington. They revisited a proposal ByteDance submitted over a year ago to alleviate U.S. security concerns about TikTok. This meeting was confirmed by sources who requested anonymity.

A Sweeping Plan for TikTok’s U.S. Operations

Discussions about TikTok's operations have been ongoing for nearly three years since the Biden administration delivered its ultimatum. Now, CFIUS and ByteDance are revisiting a comprehensive plan introduced last year. Under this plan, ByteDance would relinquish control over TikTok’s U.S. operations to a three-person board, essentially selected by CFIUS.

The plan, known to the public since late last year, grants the U.S. government unprecedented authority over a platform that boasts 150 million users nationwide. The proposal's details, more restrictive than any measures sought over American companies like Facebook and Google, could lead to government influence over what TikTok users see.

Under the plan, a subsidiary named TikTok U.S. Data Security would manage all of the app’s critical functions in the U.S., including user data, engineering, security, and content moderation. A CFIUS-approved board would run this subsidiary, reporting solely to the federal government, not ByteDance.

CFIUS monitoring agencies can access TikTok facilities at any time and overrule its policies or contracting decisions. They could also set rules for all new company hires, including requirements for U.S. citizenship, additional background checks, and the ability to deny employment at any time.

ByteDance’s Proactive Measures and Future Challenges

ByteDance has already taken steps towards the proposed plan, such as relocating most of its 1,500 U.S. employees to a subsidiary and migrating U.S. user data to servers operated by American tech company Oracle. However, the agreement that entails significant third-party auditing and government involvement has yet to be signed.

Despite these proactive measures, TikTok still faces challenges ahead. The company is under scrutiny in Washington due to concerns over potential vulnerability to China's surveillance state. Critics argue that the proposed agreement is inadequate and calls for a complete ban or forced sale.

Moreover, the political landscape may complicate the negotiations between TikTok and the government. The ongoing legal battle between federal agencies and social media giants could influence the negotiations. Recently, the Biden administration urged the Supreme Court to block a lower court's order that prevents federal agencies from pressuring companies to remove objectionable content.

As the discussions between ByteDance and the Committee on Foreign Investment in the United States (CFIUS) resume, the future of TikTok in the U.S. remains uncertain. With political pressure, cybersecurity concerns, and the influence of social media, the outcome of the negotiations will have far-reaching implications.