The Chinese government acquired a stake in domestic unit of TikTok. This just goes to show how China is tightening its grip on the country’s growing technology sector. The acquisition does not seem to directly impact the popularity of the TikTok app, which surpassed Facebook Messenger as the most downloaded app in the United States.
Though the present development might raise a fresh debate whether TikTok is a national security risk to American users.
Currently, the Chinese government has acquired a 1% stake and one of the three seats on the board of Beijing ByteDance Technology Co. Ltd., owners of TikTok. The news of the acquisition was earlier published on The Information.
Earlier the Trump government banned TikTok via executive order in 2020. The app was banned on grounds to protect national security and prevent Beijing from exploiting the app to collect data. The order was revoked by Biden in June, to scrutinize of the apps controlled by foreign adversary poses risks to US national security.
Earlier TikTok had clarified its stand saying the company was a place for entertainment and not politics. The audience is attracted to its platform for positive and joyful content as a possible explanation for why so few videos related to sensitive topics such as the protests in Hong Kong appear.
We will have to see what new developments take place from the recent actions of the Chinese government.