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Wednesday, January 22, 2025

TikTok urged by lawmakers to divest from Chinese ownership

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Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook

Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook

Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party has outlined a pathway for TikTok to continue its operations in the United States. The key condition is that TikTok must divest from Chinese Communist Party control. This was detailed in an op-ed published by The Hill.

Moolenaar recently held a meeting with businessmen Kevin O'Leary and Frank McCourt to discuss the potential divestiture of TikTok. The committee remains committed to ensuring a qualified divestiture as all options are explored.

The Supreme Court recently upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, which aims to protect digital landscapes from foreign influence. As a result, tech companies like Apple, Google, and Oracle have stopped offering TikTok services in the U.S.

Moolenaar criticized TikTok's response to these developments, stating that "TikTok’s attempts to blame the government are deceiving." He emphasized that Congress provided a clear path for TikTok: sever ties with the Chinese government to lift restrictions. ByteDance, TikTok’s parent company, was given 270 days to sell its stake but has yet refused any sale discussions.

ByteDance's refusal is seen as an unwillingness to comply with legal requirements rather than focusing on profit. Moolenaar described this behavior as indicative of "a foreign adversary" avoiding losing access to American users' data.

President Trump initially highlighted TikTok's national security risks while acknowledging its popularity among American users. There is now consideration for delaying law implementation to allow time for potential sales negotiations.

Congress included a provision allowing for a one-time 90-day extension for administration transition if needed. The law requires complete severance from ByteDance or other Chinese entities, including control over content recommendation algorithms and user data management.

The situation calls for decisive action from ByteDance: sell and comply with U.S. laws or face continued operational restrictions. According to Moolenaar, "the stakes are higher than ever," emphasizing national security concerns linked with foreign influences through digital platforms like TikTok.

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