The Skin-Tech Devices Helping Execs Beautify in a HurryRead More

TikTok CEO Shou Zi Chew photographed in the company's Washington, D.C. office. Photo by Getty.

TikTok’s Plan to Stay in the U.S. Could Pose a Threat—to U.S. Tech Companies

By  |  March 9, 2023 9:00 AM PST
Photo: TikTok CEO Shou Zi Chew photographed in the company's Washington, D.C. office. Photo by Getty.

In a bid to avoid a U.S. ban, TikTok is embarking on a project to restructure its product and operations in the country. It plans to store local citizen data on local servers, create a domestic entity to house that data, comply with local legal and law enforcement requests for data, limit the flow of data across national borders—and spend billions of dollars to make all of this possible. In short, it plans to bring to life the model of internet governance the tech industry and the U.S. government have spent the past 20 years vehemently resisting.

The irony, of course, is that this outcome is the result of sustained pressure by U.S. lawmakers. Politicians have battered TikTok in the press and in congressional hearings, calling it a threat to U.S. national security because ByteDance, its parent company, is headquartered in China. Critics have alleged that TikTok could provide U.S. user data to the Chinese government or manipulate its algorithm to promote Chinese propaganda.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Briefing crypto media/telecom
Why the CFTC’s Binance Lawsuit Is Good News for Coinbase
Why the CFTC’s Binance lawsuit is good news for Coinbase. Plus, Musk’s backers need to believe.
Privately held crypto exchanges are setting new lows in corporate governance. If you thought the initial bankruptcy filing for Sam Bankman-Fried’s FTX was stunning in what it revealed about how that company was run, check out the Commodity Futures Trading Commissions lawsuit against Binance today. Here’s a business empire controlled by one person, Changpeng Zhao, which has no board of directors...
Latest Briefs
 
Alibaba to Split Into Six Business Units in Major Restructuring
Zoom Adds OpenAI Productivity Features, Launches Digital Assistant
Ten Private Equity Firms Contacted Sumo Logic Before Buyout
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Tonal’s now-shuttered Palo Alto, Calif. retail store. Photo by Getty.
Exclusive startups
Tonal’s Valuation May Fall 90% in ‘Cram-Down’ Financing
Tonal, a fitness startup with a cadre of celebrity backers, is crunched for cash after failing to find a buyer.
Bill Gurley in 2019. Photo by Bloomberg
Exclusive
Good Eggs Cuts Its Valuation 94% in Lifeline Financing as More Startups Get Desperate
As more startups struggle to raise money from venture capitalists and approach bankruptcy, they are going to extreme lengths to stay afloat.
SpaceX CEO Elon Musk last August. Photo by Bloomberg
Exclusive startups electric vehicles
SpaceX Plans New Funding With Backing From Saudi, UAE Investors
A subsidiary of Saudi Arabia’s investment fund and an Abu Dhabi investment firm are planning to invest in a multibillion-dollar funding round for SpaceX, Elon Musk’s rocket company, according to people familiar with the investor discussions.
Block chairman and co founder Jack Dorsey. Photo by Getty
markets
Fintech’s Big Wakeup Call
Fintechs were supposed to transform banking by making it dead simple for users to open savings accounts or pay their bills.
Art by Clark Miller.
Market Research e-commerce culture
The Skin-Tech Devices Helping Execs Beautify in a Hurry
I’m always 29 at heart,” said Liyia Wu, CEO of ShopShops, a livestream shopping app for fashion, beauty and lifestyle products.
Art by Clark Miller
Surreal Estate real estate
Silicon Valley’s Realtors, Like Its Bankers, Are Having a Tough Month
In early March, Ken DeLeon, founder of DeLeon Realty, a Silicon Valley–based brokerage that sold more than $1 billion in homes in 2021, called one of his venture capitalist clients to discuss the purchase of a $20 million–plus megamansion.