TikTok's US Journey: Crossing Regulatory Hurdles

In a significant development, China has approved the transfer agreement for TikTok, an action anticipated to further resolve prolonged regulatory tensions between the US and China over the popular short video app. US Treasury Secretary Scott Bessent announced the approval, expecting the transfer to progress in the coming weeks, yet detailed timings remain undisclosed.

This movement follows the directives of a 2024 US law, demanding ByteDance's divestment of TikTok's US assets. This legislation aimed to dilute Chinese influence over TikTok, used by 170 million Americans, citing national security concerns. A consortium of US and international investors is set to acquire a majority stake, with ByteDance's share restricted below 20% to comply with the legal mandate.

However, the proposed licensing agreement for TikTok's algorithm still spawns apprehensions among US lawmakers. US Representative John Moolenaar highlighted potential risks associated with the algorithm's control and security under the new ownership. As ByteDance designates one board member among seven, with the remainder being Americans, stakeholders await TikTok's new operational landscape under its revised corporate structure.