US house passes bill for ByteDance to divest US assets in six months

TikTok in the USA: The US House of Representatives has passed a bill with a majority, setting a deadline of about six months for ByteDance, the Chinese owner of TikTok, to divest its US assets or face a ban. 

This action marks the most substantial threat to the popular short-video app since the Trump administration's scrutiny. The bipartisan vote of 352-65 underlines the concern over security risks posed by foreign-owned apps, although the bill's future in the Senate remains uncertain, with differing opinions on how to regulate such platforms.

Senate Majority Leader Chuck Schumer has signalled that the Senate will review the legislation, highlighting the gravity of the issue in national security discussions concerning China. The Biden administration has also voiced support for swift action in the Senate. TikTok, boasting about 170 million American users, has emerged as a focal point in Washington, with lawmakers inundated with feedback from concerned users.

TikTok CEO Shou Zi Chew, reportedly in Washington this week, has warned of the potential consequences of the bill, underlining the impact on creators and small businesses if a ban were implemented. The company pledges to utilise legal recourse to challenge any ban, with the bill allowing 165 days for such action following Joe Biden's anticipated signing.

In the charged political atmosphere, particularly amidst an election year where tough stances on China resonate, there is a growing momentum behind the bill. However, there are apprehensions about alienating younger voters and the broader implications of severing ties with a platform of significant cultural influence.

The debate extends beyond immediate security concerns, with questions raised about data privacy and ownership. White House national security adviser Jake Sullivan highlighted the broader implications, asking whether TikTok's ownership aligns with national interests and where user data should reside.

China's Foreign Ministry has criticised the legislation, highlighting the absence of evidence linking TikTok to national security threats and characterising the ongoing scrutiny as unjustified.

(With Reuters inputs)