President Joe Biden signed a foreign aid package that includes a bill aiming to force ByteDance, the China-based parent company of TikTok, to divest the app within a year or face a ban.
The law grants ByteDance nine months initially to arrange a deal, extendable by another three months if progress is evident.
Initially, the legislation faced Senate hurdles after House approval as a standalone bill. The bill was then bundled with foreign aid to U.S. allies, compelling the Senate to consider them together. This revised version extended the divestment timeline to a year, gaining support from previously uncertain lawmakers.
TikTok’s response was swift, with spokesperson Alex Haurek announcing plans to legally challenge the law, potentially delaying enforcement.
Key concerns include China’s response and its willingness to allow ByteDance to sell TikTok along with its valuable algorithm.
TikTok CEO Shou Chew criticized the bill, arguing it effectively constitutes a ban on the platform. He emphasized TikTok as a space for Americans to share and connect, reflecting broader tensions around Chinese-owned tech platforms and national security.
The situation remains dynamic, with legal challenges and geopolitical factors shaping the fate of TikTok in the U.S.
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