Concerns Over TikTok and Its Ownership
Rep. John Moolenaar, a Republican from Michigan and chairman of the House Selection Committee on China, stated on Friday that he has requested an “urgent” briefing regarding the president’s approval for TikTok to remain available in the U.S.
Moolenaar had previously voiced worries about the implications of this deal, particularly concerning the reliance on algorithms developed by a Chinese-owned company. He mentioned that he would “fully monitor” the agreement to ensure compliance.
“ByteDance has demonstrated problematic behavior multiple times, and the Chinese Communist Party’s ultimate aim is to weaken America,” he said in a statement. “That’s the reason why, driven by strong bipartisan support, Congress has called for the divestiture of TikTok’s management.”
In 2024, legislation was passed mandating TikTok’s China-based parent company to divest control of the app or face a ban from U.S. networks and app stores. This measure gained momentum amid growing bipartisan fears regarding China’s potential access to American user data and the possibility of influencing content feeds.
However, implementation of the law, which is set to take effect in January, has been postponed for nine months as Trump seeks a deal that would facilitate TikTok’s continued availability in the U.S.
Administration officials indicated last week that TikTok had established a “framework” for a contract after discussions with China that would lead to majority U.S. ownership.
On Thursday, Trump signed an executive order stating that the contract’s terms align with the legal requirements for sale.
“Transitioning to a majority U.S.-owned entity is a crucial step in potentially alleviating some regulatory concerns, although the sale isn’t the sole requirement of the law,” Moolenaar noted on Friday.
He further explained that the law includes stringent safeguards to prevent collaboration between the new TikTok management and the crucial advisory algorithm, effectively severing operational ties between the two entities.
As part of the agreement, the original ordinance retains less than 20% of TikTok shares. Oracle, having invested in the new U.S.-based company, will also serve as a security provider and maintain copies of the algorithm.
Vice President Vance emphasized on Thursday that the new U.S.-based companies “are in charge of how algorithms distribute content.”
However, Moolenaar expressed skepticism last week, suggesting that the deal might still permit the algorithm’s licensing to future TikTok successors. He cautioned that such arrangements “could allow continued influence or control by the CCP.”
