China’s TikTok deal great for China, not for America

TikTok has posed two national security threats.
First, TikTok and its owner, ByteDance, have repeatedly made promises about the security of the personal data of Americans, but they have not honored pledges and have broken U.S. statutes. The company settled charges that it violated U.S. child privacy laws.
Second, the Chinese regime uses TikTok’s curation or recommendation algorithm, which determines the distribution of videos, to propagate its narratives as well as spread hate, sow disinformation, glorify self-harm, and promote illicit drug use. TikTok videos turn Americans against Americans and America itself.
The arrangement…. does not adequately eliminate the algorithm problem. Chew stated in his memorandum that the joint venture will be responsible for “retraining the content recommendation algorithm on U.S. user data to ensure the content feed is free from outside manipulation.”
NPR reporting suggests that China will continue to own and control the algorithm — often referred to as TikTok’s “secret sauce” — and that the new joint venture will license it. The New York Times reported in September that China would still own the algorithm. Any Chinese involvement in the curation process, especially considering Beijing’s past use of the algorithm, is unacceptable.
“Everything is seen in China,” a member of TikTok’s Trust and Safety Department said in September 2021. A “Beijing-based engineer” known as “Master Admin” had “access to everything.”
“The platform has repeatedly lied about its data-sharing practices to Congress, and there is no reason to begin trusting them now,” Chuck Flint, a former U.S. Senate chief of staff, said to Gatestone at the time, referring to TikTok.
Moreover, China used TikTok to foment violence on American streets, which is not only a crime but also an act of war.
Trump clearly violated the Protecting Americans from Foreign Adversary Controlled Applications Act, known as the “TikTok law,” by granting on January 20 an extension to allow TikTok to operate in the United States. The extension was not authorized by the law, and neither were the three other extensions Trump granted.

“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” TikTok CEO Shou Zi Chew reported in a memo to employees on December 18.

In response to intense American pressure, ByteDance, the privately owned Chinese company that owns TikTok, agreed to spin off TikTok’s U.S. operations.

According to Chew, the joint venture, named TikTok USDS Joint Venture LLC, would be “majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and U.S. national security.”

The deal, however, is not good for America. The Trump administration should either close TikTok or seize the extremely popular video-sharing app without compensation.

TikTok has posed two national security threats.

First, TikTok and its owner, ByteDance, have repeatedly made promises about the security of the personal data of Americans, but they have not honored pledges and have broken U.S. statutes. The company settled charges that it violated U.S. child privacy laws.

Second, the Chinese regime uses TikTok’s curation or recommendation algorithm, which determines the distribution of videos, to propagate its narratives as well as spread hate, sow disinformation, glorify self-harm, and promote illicit drug use. TikTok videos turn Americans against Americans and America itself.

The TikTok deal, as revealed by Chew, would solve the data security issues. Oracle, which will own 15% of the new joint venture, will store user data in the U.S. in its cloud computing data centers.

The arrangement, however, does not adequately eliminate the algorithm problem. Chew stated in his memorandum that the joint venture will be responsible for “retraining the content recommendation algorithm on U.S. user data to ensure the content feed is free from outside manipulation.”

That is a move in the right direction, but NPR reporting suggests that China will continue to own and control the algorithm — often referred to as TikTok’s “secret sauce” — and that the new joint venture will license it. The New York Times reported in September that China would still own the algorithm. Any Chinese involvement in the curation process, especially considering Beijing’s past use of the algorithm, is unacceptable.

Chinese law requires that any transaction involving the algorithm — even a licensing — is subject to its export-control laws, and it is clear that Beijing will never allow a sale of the algorithm offshore, especially to American parties. The Chinese government has not yet announced that it approves the deal as outlined by Chew.

America does not need China’s approval, however.

TikTok mishandled data — and deceived Congress about it. “We have not been asked for any data by the Chinese government, and we have never provided it,” Chew testified before the Senate Judiciary Committee on January 31, 2024, in response to a question by Senator John Cronyn (R-TX).

Chew almost certainly did not tell the truth, and China did not need to ask. As BuzzFeed reported in June 2022, China had access to everything on the platform and, in fact, accessed it. “Everything is seen in China,” a member of TikTok’s Trust and Safety Department said in September 2021. A “Beijing-based engineer” known as “Master Admin” had “access to everything.”

Moreover, it appears that the U.S.-based operations of TikTok were just window dressing. “U.S. staff did not have permission or knowledge of how to access the data on their own, according to the tapes,” BuzzFeed reported.

“The platform has repeatedly lied about its data-sharing practices to Congress, and there is no reason to begin trusting them now,” Chuck Flint, a former U.S. Senate chief of staff, said to Gatestone at the time, referring to TikTok.

TikTok has also been accused of surveilling, censoring content, and allowing the surreptitious downloading of software on devices. The app even tracks keystrokes.

Moreover, China used TikTok to foment violence on American streets, which is not only a crime but also an act of war. As Radio Free Asia reported in August 2020, a People’s Liberation Army intelligence unit based in China’s Houston consulate sent “tailor-made” videos to incite Americans to riot. Related reporting revealed the videos were distributed by TikTok.

“The only acceptable deal requires ByteDance’s complete divestment of TikTok,” said Flint. “The Communist Party will maintain influence over the platform unless there is full separation,” Chew reported that ByteDance will own 19.9% of the new joint venture.

In these circumstances, the Trump administration should either invoke its emergency powers to stop the operation of TikTok or seize the app pursuant to federal forfeiture statutes, which permit confiscation of property used in the commission of a crime. Congress can step in should Trump not act.

It is time the Trump administration started enforcing federal law when it comes to TikTok. Trump clearly violated the Protecting Americans from Foreign Adversary Controlled Applications Act, known as the “TikTok law,” by granting on January 20 an extension to allow TikTok to operate in the United States. The extension was not authorized by the law, and neither were the three other extensions Trump granted.

On the night of June 15, 2020, Chinese soldiers killed 20 Indian soldiers in Galwan, high in the Himalayas, in a surprise attack. The reaction of Indian Prime Minister Narendra Modi was robust and immediate: He banned TikTok and 58 other Chinese apps.

China’s regime uses TikTok to promote illegal drug use in America and, at the same time, participates in the fentanyl trade, which results in the deaths of tens of thousands of Americans a year. Why can’t Trump demonstrate the same political will as Modi?

Gordon G. Chang is the author of Plan Red: China’s Project to Destroy America, a Gatestone Institute distinguished senior fellow, and a member of its Advisory Board. Follow Gordon G. Chang on X (formerly Twitter)

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