Does China Control TikTok? Identify the Lines of Connection
Does China control TikTok? Is the U.S. government’s concerns regarding the Chinese government’s influence on the popular social platform valid?
Let’s explore all available facts and identify the complicated connections between TikTok and the People’s Republic of China.
TikTok Chinese Government: The Facts as We Know Them
With the potential ban of TikTok in the U.S. just around the corner, more and more American users are asking, “Is the TikTok Ban Bill lawful?”
TikTok’s association with China — via its China-based parent company, ByteDance — is the root of all of the platform’s troubles. The U.S. government is worried about the Chinese government’s potential influence over the app. If TikTok wants to prevent the nationwide ban, ByteDance must sell the app to a non-Chinese entity.
The app has faced down a lot of scandals, including concerns regarding how TikTok collects and uses data. The possibility of China having access to user information — via ByteDance — somehow makes these processes seem more sinister.
However, there’s very little evidence that ByteDance shares data with the Chinese government. It’s also important to note that TikTok’s data mining processes are no different from those of Facebook, Instagram, and other platforms.
But if ByteDance owns TikTok, doesn’t that mean that it is a Chinese social media company? While Beijing-based ByteDance owns TikTok, the app is not a Chinese company.
Its current CEO, Singaporean business executive Shou Chew, has always pointed out that TikTok has not even operated in China. TikTok actually has a counterpart in the country, Douyin, which is also its precursor.
TikTok was also first incorporated in Los Angeles in 2015, and has headquarters in LA and Singapore.
How To Get From TikTok to China
TikTok’s ownership follows a complex and multi-layered corporate structure. Let’s trace the convoluted lines that connect TikTok to China:
- The app is owned by TikTok LLC, which is incorporated in Delaware and based in Culver City, California.
- TikTok LLC is controlled by TikTok Ltd, which is registered in the Cayman Islands and headquartered in Shanghai, China.
- TikTok Ltd is owned by ByteDance, which is also registered in the Cayman Islands and based in Beijing, China.
- ByteDance is a privately owned Chinese tech company. It is owned by its founders and several Chinese investors (20%), foreign investors, including U.S. companies (60%), and its employees (20%).
- ByteDance’s, as well as TikTok’s, founders are Chinese engineers Zhang Yiming and Liang Rubo. They founded ByteDance in Beijing in 2012 and eventually developed TikTok as Douyin’s international counterpart a few years later.
When ByteDance CEO Chew was called to testify in the U.S. Congress in 2023, he said ByteDance is “global” in nature. He also pointed out that while the private company was founded in China, 60% of ByteDance is owned by global institutions.
Some of its U.S. investors include the Carlyle Group, General Atlantic, and Susquehanna International Group. Out of ByteDance’s five board members, three are Americans.
So, is TikTok controlled by the Chinese government? The answer points to no.
Does China Have Access to TikTok Through ByteDance?
The CEO of ByteDance has emphatically stated that the Chinese government does not own or control the company. But again, the answer is not a simple yes or no.
As a Chinese parent company, ByteDance has to meet certain legal requirements and obligations:
- Establish an in-house Communist Party committee that includes party member employees. ByteDance’s Chinese operations’ VP and EIC Zhang Fuping also serves as the committee secretary.
- Under China’s amended National Intelligence Law, organizations and citizens are required to to support, assist, and cooperate with national intelligence work. This means ByteDance has a legal obligation to assist with the Chinese government’s intelligence gathering practices.
- Allow the Chinese government to take a “golden share” in one of ByteDance’s key subsidiaries. This “golden share” represents a 1% ownership of Douyin (or Beijing Douyin Information Service).
According to analysts, “golden shares” allow the Chinese government to get involved with the day-to-day businesses of tech companies. On its website, ByteDance says that this is SOP for news and information platforms in China. However, this access does not extend beyond China’s boundaries. This means the so-called golden share does not affect ByteDance’s international operations.
Another cybersecurity law that applies to tech companies in China allows the state to monitor, prevent, and handle cybersecurity risks and threats. These risks and threats include those that arise inside the PRC’s territory and from foreign adversaries.
All of these seem to indicate that the Chinese government can compel ByteDance to share TikTok user information.
Should You Stop Using TikTok?
For brands, creators, and regular users on TikTok, the platform offers plenty of options to help ensure privacy and security. Creators, for example, may keep their public and private activities separate by maintaining two accounts (a public one and a private one).
Again, it’s important to remember that the platform’s data mining practices are similar to those of other social media platforms. You don’t like how TikTok collects and uses your data? Then you should also worry about the security of your information on Facebook, Instagram, WhatsApp, etc.
Does China control TikTok? Based on available facts, it’s unlikely that the Chinese government has any influence on how TikTok operates.
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Does China Control TikTok?: Frequently Asked Questions
Does the Chinese government have access to TikTok user information? Here are a few more FAQ to sum up everything you need to know about the platform’s Chinese connection.
Does the Chinese government have access to TikTok user information? Here are a few more FAQ to sum up everything you need to know about the platform’s Chinese connection.
According to some cybersecurity laws in China, the People’s Republic may compel ByteDance to assist in the government’s intelligence-gathering activities. These activities may require ByteDance to provide TikTok data to the government. However, there’s very little evidence that this is currently happening.
ByteDance continues to oppose the forced sale of its prized product, TikTok. The company has stated that it will not give up its ownership of the platform.
The U.S. government’s ultimatum would involve exporting TikTok’s highly valued algorithm. And given China’s new export laws, the government also has a legal right to oppose the sale.