Former U.S. Treasury Secretary Steven Mnuchin is spearheading an initiative to acquire ByteDance's TikTok, as bipartisan legislation poses a potential threat to its presence in the United States.
However, this does not sit well with China, especially since it is now urging the US to stop suppressing the platform amid tensions between the two big nations.
Will the TikTok buyout push through?
House Passes Bipartisan Bill
The House of Representatives recently approved a bipartisan bill that, if enacted, would compel ByteDance to sell its flagship global app or face a ban on TikTok within the U.S.
Mnuchin expressed support for the bill, emphasizing the importance of U.S. ownership of TikTok.
"This should be owned by U.S. businesses. There's no way that the Chinese would ever let a U.S. company own something like this in China," Mnuchin said via CNBC.
Related Article: TikTok CEO Tells Users to 'Protect Your Constitutional Rights' After House Vote Against the Social Media Platform
TikTok's Political and Strategic Significance
TikTok's extensive reach in the U.S., with an estimated 170 million users, has raised concerns among lawmakers about its potential to provide the Chinese government with undue influence.
Major tech investors have echoed these concerns, labeling the platform as a threat to national security.
Uncertainty Surrounding Ownership
While ByteDance's valuation was $220 billion in 2023, the valuation of TikTok alone remains unclear. TikTok's algorithm, developed in China, is considered its most valuable asset. Selling TikTok without its algorithm could diminish its appeal to potential buyers.
Interested Buyers and Mnuchin's Involvement
Apart from Mnuchin's efforts, other parties, including former Activision Blizzard CEO Bobby Kotick, have shown interest in acquiring TikTok.
Mnuchin's recent investment in stabilizing New York Community Bancorp underscores his financial capabilities in such endeavors.
China's Response to Legislative Actions
China has criticized the U.S. for its attempts to restrict TikTok and urged it to cease its actions. The Chinese government contends that the U.S. has failed to demonstrate TikTok's threat to national security and views the legislative actions as self-serving, per Bangkok Post.
Potential Escalation of U.S.-China Tensions
The bill's passage in the House of Representatives could escalate tensions between the U.S. and China, particularly if it is enacted into law.
Despite recent efforts to stabilize relations between the two countries, issues such as trade and technology continue to strain diplomatic ties.
The future ownership of TikTok in the U.S. remains uncertain amidst legislative challenges and geopolitical tensions. Mnuchin's initiative to acquire TikTok reflects broader concerns about national security and foreign influence in the tech sector.
The legislative process will continue to unfold, and TikTok's fate and its impact on U.S.-China relations will continue to be closely monitored.
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