Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Social Media tiktok ban

If TikTok's negotiations with the U.S. sour, the company could seek to separate from its parent company. (Photo by Rolf Vennenbernd/picture alliance via Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Mar 15, 2023

TikTok’s Strategy To Stay In the U.S.

In a move to prevent an outright ban in the U.S., TikTok officials are exploring the option of splitting with China-based parent company ByteDance. 

Key Details

  • TikTok separating from ByteDance would be a drastic move requiring approval from Beijing. 
  • The social-media company is under a security review from the Committee on Foreign Investment in the United States. So far, the investigation has not alleviated concerns about TikTok’s security, Forbes reports. 
  • If TikTok separates from ByteDance, the company could go public through an initial public offering. However, this separation is most likely a last resort if discussions with U.S. lawmakers fall through. 
  • TikTok’s U.S.-based division has an estimated value of $40 billion to $50 billion, Bloomberg reports. 
  • In response to concerns about security, TikTok agreed to bring in U.S. tech company Oracle to host its U.S.-based data. 

Why it’s news

Criticism of TikTok is rapidly growing as multiple states ban the app on government devices and lawmakers present legislation to ban the app in the U.S.

Nearly 100 million Americans are TikTok users, making the U.S. market a significant part of TikTok’s business. The video-sharing app brought in around $11 billion in revenue last year. 

The number of TikTok critics has grown in the past year as more revelations about the app’s lack of security come to light. More lawmakers have suggested that a TikTok ban is the best way forward. 

A new bipartisan bill recently introduced by a dozen senators would give the Secretary of Commerce power to regulate and potentially ban foreign technology, including TikTok. 

The Restricting the Emergence Of Security Threats That Risk Information and Communications Technology Act, or RESTRICT Act, allows the government to regulate technology from countries considered adversarial to the U.S., including China, Iran, Russia, Cuba, North Korea, and Venezuela. 

The White House endorsed the bill, saying it is “a systematic framework for addressing technology-based threats to the security and safety of Americans.”

The bill does not explicitly mention the Chinese-based social-media platform TikTok, but several senators who introduced the bill repeatedly mentioned the dangers that TikTok poses to national security.

Just before the RESTRICT Act was proposed, Senator Marco Rubio (R-FL) announced legislation in the Senate explicitly intended to ban TikTok.

Backing up a bit

On March 23, TikTok CEO Shou Zi Chew is expected to testify before the House Energy and Commerce Committee regarding the social-media company’s privacy policy, the app’s effect on children, and the company’s relationship with the Chinese Communist Party.

Committee Chair Cathy McMorris Rodgers announced that the TikTok CEO had been asked to appear before the committee to address lawmakers’ concerns with the social-media company. Rodgers claims that TikTok has knowingly allowed the Chinese Communist Party to access user data through the app.

“We’ve made our concerns clear with TikTok. It is now time to continue the committee’s efforts to hold Big Tech accountable by bringing TikTok before the committee to provide complete and honest answers for people,” Rogers says. 

Home / News / TikTok’s Strategy To Stay In the U.S.
Share
FacebookTweetEmailLinkedIn

Related Stories

Regulators Struggle To Understand A.I. 

by Tyler Hummel Leaders Staff
Public Policy

5 hours ago

EU

The rapid proliferation of artificial intelligence (AI) has meant that world governments are struggling to understand the implications of AI as a disruption tool and thus aren’t able to meet the needs of writing regulations for it. 

Key Details

  • The White House released a blueprint in October to address many of the core economic and legal concerns with new technologies, such as algorithmic racial bias, data harvesting, and automation. 
  • The European Union proposed its Artificial Intelligence Act in 2021, litigating uses for AI that it deems high-risk and low-risk, but it hasn’t passed. 
  • Both major proposals were written before ChatGPT was released on November 30, 2022, which sparked four months of rapid innovation and demand for AI applications. 
  • The Chinese government has similarly stated its intention to limit AI, announcing on February 24 that the Ministry of Science and Technology will be monitoring the safety and uses of the technology. 
  • Smaller agencies like the New York City Department of Education and various financial institutions have limited uses of chatbots in specific applications. Still, national-level solutions have been limited, Bloomberg notes.

Go deeper

FacebookTweetEmailLinkedIn

Meta Shelves the Metaverse … Quietly

by Tyler Hummel Leaders Staff
Tech

14 hours ago

Metaverse

After pouring billions into it, Facebook’s delve into virtual reality appears to be a secondary consideration after layoffs and poor sales. 

Key Details

  • Mark Zuckerberg and Facebook parent company Meta Platforms appear to be shying away from metaverse, maintaining that the service has a future but quietly shifting the core focus of the company toward artificial intelligence (AI).  
  • On Tuesday, the company announced another round of mass layoffs, with 10,000 more Meta employees losing their jobs. 
  • On March 3, Meta cut the prices of its flagship Meta Quest Pro products by 33%. 
  • A report from The Verge that same day found metaverse users in the Horizon World’s virtual space only retained 10% of users as regular users. 
  • The metaverse has consistently lost money for the company, including $13.7 billion in 2022, causing investor pushback in an October 2022 investor call.

Go deeper

FacebookTweetEmailLinkedIn

A Bailout Eclipsing That Of 2008 

by Tyler Hummel Leaders Staff
Markets

Mar 18, 2023

FR

The Federal Reserve has handed out hundreds of billions of dollars in the past week to avoid a banking crisis—one that President Joe Biden is eager to prevent from happening again. 

Key Details

  • According to the Federal Reserve’s Thursday report, the central bank lent $297 billion in emergency funds from Friday to Wednesday, in addition to $153 billion in lending against their collateral using “discount windows.” 
  • The spike in loans marked the highest number of requests the Fed has received in decades, eclipsing the 2008 financial crisis’s $111 billion discount window and the COVID pandemic’s $51 billion, Axios reports.    
  • In response to the ongoing turmoil, President Biden called for Congress on Friday to tighten banking regulations and impose penalties on banks “whose mismanagement contributed to their institutions failing.”

Go deeper

FacebookTweetEmailLinkedIn
Apple is limiting hiring and pausing bonuses for workers company-wide in an effort to reduce costs.
Business

Mar 18, 2023

Apple Cuts Back In Its Own Way

by Savannah Young Leaders Staff
Twitter is shifting its ad strategy—bringing in more lesser-known brands seeking clicks rather than more prominent brands seeking exposure
Business

Mar 17, 2023

Twitter’s Shift In Ad Strategy

by Savannah Young Leaders Staff
Social Issues

Mar 17, 2023

Political Pressures On College Campus 

by Tyler Hummel Leaders Staff

Recent Articles

Productivity

Mar 17, 2023

Unlocking Your Inner Drive: How to Motivate Yourself

Make real progress by trying out these techniques for boosting your self-motivation.

Wealth

Mar 15, 2023

Secure Your Family’s Future With Generational Wealth

Find out how to set your family up for a bright future with generational wealth.

Business

Mar 13, 2023

Which of the 16 Work Personality Types Are You?

Work personality types refer to how individuals approach and engage with work tasks, coworkers, and their environments.

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com