Former Trump-advisor Steve Mnuchin plans to buy TikTok from ByteDance, China furious at ‘Robber’s Logic’

Former United States Treasury Secretary and a close aide to former US President Donald Trump, Steve Mnuchin has unveiled his intentions to assemble investors to purchase TikTok from its Chinese parent company ByteDane.

This announcement follows the House of Representatives’ passing of a bill that aims to ban the app in the US and have it removed from all app stores unless ByteDance divests its US operations.

The House of Representatives has been trying to legislate TikTok and its connections with ByteDance, citing national security concerns. However, the US Senate has not scheduled a vote on this bill, as of yet.

Meanwhile, President Joe Biden has expressed his intention to sign the bill if it advances to his desk, although its fate in the Senate remains uncertain.

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Speaking on the CNBC business program Squawk Box, Mnuchin, who served under former President Donald Trump from 2017 to 2021, stated his intentions for TikTok.

Mnuchin emphasised why it was important for the US to own TikTok if it were to have access to the kind of data of Americans it currently enjoys. Mnuchin went on to say that the reverse situation, where an American company with close ties to the American government would not be permitted in China if it too was collecting huge troves of data as TikTok does.

The details of Mnuchin’s plans, including potential investors, remain unknown. However, this is not the first attempt to transfer TikTok’s control to American entities. In 2020, then-President Trump supported a proposed deal involving Oracle and Walmart to create a US-based enterprise.

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US legislators have long raised concerns about TikTok’s extensive user base, fearing data security risks due to its Chinese ownership. The recent House vote on the potential TikTok ban received overwhelming support, with 352 votes in favour and 65 against.

China calls it “Robber’s Logic, Unfair Suppression”
In response to the House’s decision, Beijing criticised the US, accusing it of adopting a “robber’s logic” towards TikTok. Chinese officials urged Washington to cease unfair suppression of foreign companies.

If the Senate approves the bill and President Biden signs it into law, ByteDance will have six months to sell TikTok to a non-Chinese entity, or face removal from US app stores.

TikTok has initiated Project Texas, a restructuring effort aimed at safeguarding US user data from Chinese influence, involving partnerships with American companies like Oracle. The platform has also expanded into e-commerce, generating substantial revenue.

The bipartisan concern over TikTok underscores broader worries about Chinese influence in various sectors. Despite political divisions, both Democrats and Republicans support measures to address these concerns.

ByteDance’s last-ditch effort
ByteDance has vigorously opposed the proposed ban, arguing it would harm small businesses and disrupt its operations. TikTok’s revenue primarily stems from advertising, but its e-commerce platform has grown significantly.

ByteDance, meanwhile is asking users in the US to reach out to their representatives and senators and address how crucial TikTok is for their businesses, how it has become the livelihood of some creators.

Instagram, owned by Meta, has emerged as TikTok’s main competitor in the US, introducing similar features to attract users. Last year, Instagram surpassed TikTok as the most downloaded app globally.

As debates continue, the fate of TikTok in the US remains uncertain, with significant implications for both the tech industry and national security.