The US is still skeptical about the short-form video app's connection with the Chinese government, especially its parent company, ByteDance. The TikTok CEO tries to assuage the fears of Congress by explaining TikTok's affiliations, but it might not be enough to stop the ban.
TikTok Executive Explains
TikTok CEO Shou Chew attempted to persuade Congress that ByteDance is "not an agent of China." He then brought "Project Texas" into the conversation, which is the company's plan to keep the US user's data in the United States.
According to officials on TikTok, Project Texas would protect the users more as opposed to the nationwide ban of the app, which was expressed following the Committee remaining skeptical of the proposal of the project, as mentioned in Engadget.
Committee Chair Representative Cathy Rodgers stated that it was merely a marketing scheme, which aligns with her opening statement saying that ByteDance is "beholden" to the Chinese Communist Party (CCP) and that TikTok and ByteDance are one and the same.
Of course, the other representatives agreed and express the same sentiments as Rodgers, with Representative Frank Pallone saying that Project Texas was not acceptable, and Representative Angie Craig saying that the project "doesn't pass the smell test."
The circumstances of the latest hearing were similar to the previous ones, wherein the TikTok CEO was bombarded with questions that can only be answered with "yes" or "no." Still, Chew managed to answer the question the best he can.
Representative Tony Cardenas questioned whether or not ByteDance was a Chinese company, and Chew answered saying that it was a global company that happens to have a Chinese founder. The questions only continued from there.
The issue of ByteDance employees spying on US journalists was brought up, to which Chew responded by saying that "spying" was not the right way to describe it. He was accused of being instructed by the CCP to deny it.
It's quite possible that Project Texas might not be enough to keep US officials from outright banning the app in the country. One of the few ways that TikTok can remain operational in the US is for ByteDance to Dibest TikTok.
Divesting TikTok
Since TikTok continues to be seen as a national security risk by the US government, one of the solutions it proposed was for ByteDance to sell its stake. The Committee on Foreign Investment in the United States (CFIUS) evaluated the deal.
Initially, ByteDance was only ordered to divest its US assets and delete the user data of US citizens, but it eventually led to complete divestiture along with the threat of banning the app if it is not done, as mentioned in Nikkei Aisa.
A spokesperson from TikTok expressed that divestment is not the solution if protecting national security is the goal, adding that a change in ownership would not impose any new restrictions on data flows or access.
He also mentioned that the best way to resolve the issue is with transparent US-based protection of US user data and systems, as well as robust third-party monitoring, vetting, and verification, which the company is already implementing.
