In America, TikTok is experiencing an existential crisis. If its Chinese owner is unable to sell the app within the next year or so, it may be prohibited in its largest market. This will further widen the gulf between two digital worlds focused on competing economic heavyweights and strike another severe blow to China’s tech ambitions.
TikTok has already stated that it will challenge the law in court, and President Joe Biden is anticipated to sign the bill into law on Wednesday.
Beijing has repeatedly stated that it is adamantly against coercing TikTok into a sale. It has updated its export control regulations to allow it to veto a sale on the basis of national security. There aren’t many choices left for ByteDance to ensure TikTok’s survival in the US, which is its largest market with 170 million users.
“Since the Chinese government won’t allow the sale of its algorithms, a forced sale of TikTok in the US amounts to a downgrade of the app,” stated Alex Capri, a lecturer at the National University of Singapore’s Business School and research fellow at the Hinrich Foundation.
ByteDance’s prospects in other mostly liberal democracies will come under further scrutiny if TikTok is forced to stop operating in the US,” he said.If the Chinese government won’t let ByteDance relinquish TikTok’s algorithm, it could block the sale outright.
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