The administration of President of the USA with several ministers, namely the Minister of Finance and Technology and with President Donald Trump is discussing the possibility of blocking the popular TikTok application for security reasons. Since the application has every opportunity to transfer user data to China, although the company claims that all servers are located in the USA and Singapore, the subsidiaries have the right and possibilities to transfer data to other subsidiaries. The government understands that the app is popular among young people, especially during the coronavirus, so it is considering several different options for solving this problem, according to FT.
Blocking an app is a good move on the part of the country’s politics, but the loyalty from the side of the young public could be undermined, so Larry Kudlow, a senior White House official, said on Thursday that he believed TikTok could become an American company and separate from ByteDance. One of the mechanisms for deciding the problem could be the Committee on Foreign Investment in the United States (Cfius). Cfius is already investigating the acquisition of Musical by ByteDance. The commission could trigger a restructuring that effectively makes TikTok an independent American company as a condition for approving the deal. Therefore, the problem can be fixed more elegantly. Despite the fallbacks, TikTok may not resist.