ByteDance, TikTok's Chinese parent company, declared on Thursday that it has no intentions of selling the social media platform. This marks its initial official response to the issue, following President Joe Biden signing a bill that could potentially lead to a nationwide ban of the immensely popular app.
In a statement released on Toutiao, a news aggregation app owned by ByteDance and popular in mainland China, the Beijing-based company refuted foreign media reports suggesting exploration of TikTok's sale. It explicitly stated, "ByteDance doesn't have any plan to sell TikTok."
This statement directly addressed an article by the Information, which claimed that ByteDance was considering scenarios for selling TikTok's US business without its video recommendation algorithm, citing three sources familiar with the discussions.
Until now, ByteDance had maintained silence regarding this week's US legislation calling for a forced sale. Chinese authorities, too, have been relatively muted despite previous indications of opposition to such measures from Beijing.
The legislation, passed by Congress as part of a broader foreign aid package, represents a significant threat to TikTok's operations in the US. Under the new law, TikTok must secure a new owner within a limited timeframe or face a complete ban from its largest market, where it boasts 170 million users.
TikTok's CEO, Shou Chew, pledged to contest the ban in court, reassuring users that the platform will continue its operations in the US.
The Chinese government has vehemently opposed the forced sale of TikTok, asserting its legal authority to intervene in ByteDance's business decisions. TikTok's algorithms, pivotal to its success, are viewed as a valuable asset by Chinese authorities, who have taken measures to safeguard against any forced sale.
Concerns among US lawmakers about Beijing's potential influence over TikTok have persisted, particularly regarding data privacy and content manipulation. Despite limited evidence supporting these concerns, ByteDance, as a China-based company, is subject to various national security and intelligence laws, prompting several countries to restrict TikTok usage by government officials.
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