TikTok CEO says app sale won't address US security concerns
Biden admin is threatening ban if TikTok’s Chinese owners do not sell stakes
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TikTok CEO Shou Zi Chew said Thursday that forcing the video-sharing app's Chinese parent company Bytedance to sell it would not address security concerns raised by the U.S. and other nations.
He told The Wall Street Journal that doing so would not provide more protection than a plan to ensure U.S. user data is accessible only by Oracle Cloud and the firms U.S.-based security team.
"So far I haven't heard anything that cannot actually be solved by this," he said.
Chew noted that he welcomes feedback on other risks that are "not addressed by this."
The Biden administration is now reportedly demanding TikTok's Chinese owners divest their stakes in the app or face a possible ban, according to The Wall Street Journal, citing people familiar with the matter.
BIDEN ADMIN THREATENS BAN IF TIKTOK'S CHINESE OWNERS DON'T SELL STAKES
Shou Zi Chew, chief executive officer of TikTok Inc., speaks during the Bloomberg New Economy Forum in Singapore, on Nov. 16, 2022. (Photographer: Bryan van der Beek/Bloomberg via Getty Images / Getty Images)
While Chew explained that he and ByteDance considered an initial public offering of TikTok, he told the Journal that there's "no concrete plan right now."
"If protecting national security is the objective, divestment doesn't solve the problem: a change in ownership would not impose any new restrictions on data flows or access," a TikTok spokesperson said in a statement to FOX Business on Friday. "The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting and verification, which we are already implementing."
Chew's remarks come ahead of testimony next week before the House Energy and Commerce Committee regarding the company's privacy and data-security practices, as well as its relationship with the Chinese government.
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The icon of the app TikTok on a smartphone. (Photo by Fabian Sommer/picture alliance via Getty Images / Getty Images)
China accused the U.S. of spreading disinformation and suppressing TikTok after reports that the White House was calling on the platform's owners to sell their stakes in the app.
Foreign Ministry spokesperson Wang Wenbin told reporters on Thursday that the U.S. has not presented evidence that TikTok threatens the country's national security and was using data security as an excuse to abuse its power to suppress foreign companies.
"The U.S. should stop spreading disinformation about data security, stop suppressing the relevant company, and provide an open, fair and non-discriminatory environment for foreign businesses to invest and operate in the U.S.," Wenbin said.
TikTok CEO Shou Zi Chew is interviewed at offices the company uses on Feb. 14, 2023, in Washington, D.C. (Photo by Matt McClain/The Washington Post via Getty Images / Getty Images)
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According to The Journal, TikTok is spending billions to move its users’ data to U.S.- and Europe-based servers, as well as hire independent monitors in an effort it says will protect user data and insulate its algorithm from outside influence. The infrastructure spending has been dubbed "Project Texas" in the U.S.
"The idea behind Project Texas is it won’t matter what the Chinese law or any law says, because we’re taking U.S. user data and we’re putting it out of their reach," Chew told the Journal.
He told the paper that he acknowledges the worries of critics and hopes that they can evaluate Project Texas on its merits.
The Associated Press contributed to this report.