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Steve Mnuchin, who previously advised Trump, is intending to purchase TikTok from ByteDance, leading to China's anger over 'Thief's Reasoning'
This is not the first time an effort has been made to shift the control of TikTok to US companies by Steve Mnuchin. In 2020, the then President Trump endorsed a proposed transaction that included Oracle and Walmart, setting up a US-based business that would acquire TikTok.
Steve Mnuchin, who previously served as the US Treasury Secretary and was a key advisor to ex-US President Donald Trump, has revealed plans to gather investors for the acquisition of TikTok from its China-based parent company, ByteDane.
This news comes after the House of Representatives approved a legislation intending to prohibit the app in the US and mandate its removal from all app platforms if ByteDance does not disinvest its US operations.
The House of Representatives is making efforts to regulate TikTok and its ties to ByteDance, based on worries about national security. As of now, the US Senate has not arranged a vote on this proposed legislation.
In the meantime, President Joe Biden has indicated his willingness to endorse the bill if it makes it to his office, even though its future in the Senate is still unclear.
While appearing on the CNBC show Squawk Box, Mnuchin, who was a part of the Trump administration from 2017 to 2021, articulated his plans for TikTok.
Mnuchin underscored the significance of the US owning TikTok in order to maintain access to the extensive data on American users that it currently possesses. He further pointed out that the inverse scenario, where a US company closely associated with the American government gathered vast amounts of data like TikTok, would not be allowed in China.
The specifics of Mnuchin's strategies, such as possible backers, are yet to be revealed. However, this is not the inaugural effort to shift TikTok's ownership to US corporations. During his presidency in 2020, Trump backed a suggested agreement that would involve Oracle and Walmart in the establishment of a US-oriented business.
American lawmakers have for a long time been apprehensive about TikTok's large number of users, due to potential data security issues associated with its Chinese ownership. The House's recent voting on the possible prohibition of TikTok was widely approved, with 352 votes for and 65 against.
China labels it as "Bandit's Reasoning, Unjust Oppression." Reacting to the decision of the House, Beijing has rebuked the US, alleging that it is employing a "bandit's reasoning" in dealing with TikTok. The Chinese authorities have called on Washington to stop the unjust oppression of overseas firms.
Should the Senate greenlight the bill and it receives President Biden's signature, ByteDance would be given a half-year timeframe to sell TikTok to an organization not based in China, or risk being taken down from US app platforms.
TikTok has launched Project Texas, a revamping initiative intended to protect the data of American users from Chinese interference. This involves collaborations with US enterprises such as Oracle. Moreover, the platform has broadened its scope to include e-commerce, which has significantly increased its income.
The shared anxiety across party lines about TikTok highlights more extensive fears about China's sway in different areas. Regardless of political differences, Democrats and Republicans alike back steps to tackle these issues.
ByteDance has fought hard against the proposed ban, stating that it would negatively impact small businesses and interfere with its functioning. While TikTok chiefly makes money from advertising, its online retail platform has seen substantial growth.
Concurrently, ByteDance is urging its US users to communicate with their local representatives and senators, emphasizing the importance of TikTok for their enterprises and how it is a vital source of income for some content creators.
Meta-owned Instagram has become the primary rival of TikTok in the United States, unveiling comparable features to entice users. In the previous year, Instagram outperformed TikTok as the most widely downloaded application worldwide.
Discussions are ongoing, and the future of TikTok in the US is still unclear. This situation could significantly affect both the technology sector and the country's security.
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