On March 13th, the U.S. House of Representatives passed a significant bill concerning ByteDance's short video platform TikTok, potentially leading to TikTok's actual ban in the United States. Named "Protect Americans from Foreign Adversaries Controlled Applications Act," the bill was approved with 352 votes in favor and 65 against, mandating ByteDance to divest TikTok within six months. Failing this, TikTok would be unable to operate in U.S. app stores and internet services.
During the voting, TikTok once again appealed to its vast user base with a popup message. Following the bill's passage, a TikTok spokesperson commented, "This process is secretive, and there's only one reason for the forced passage of the bill: it's a ban order. We hope the Senate will consider the facts, listen to the opinions of voters, and realize its impact on the economy, 7 million small businesses, and 170 million Americans who use our service."
This bill is more severe than similar efforts during the Trump administration. In 2020, the Trump administration issued an executive order coercing ByteDance to sell a portion of TikTok's shares to American companies. However, this order was blocked in court and never took effect. The current Congressional action represents a joint effort by the U.S. government and legislative bodies, with President Biden stating he would sign the bill into law if passed by both houses of Congress.
If ByteDance is forced to divest TikTok within 165 days, the urgency may lead to reduced offers from potential buyers, resulting in significant losses for ByteDance. If ByteDance is unwilling or unable to complete the divestiture within 165 days, TikTok could become the first internet app to be federally banned in U.S. history. Under the bill, no app store could list TikTok, nor could cloud or communication service providers offer any support, marking an unprecedented event in U.S. history.
For ByteDance, the real test has just begun. Fortunately, other Chinese apps like the e-commerce platforms Temu and Shein have not yet become targets of legislators, possibly due to their primary focus on commerce rather than content. However, this also suggests potential risks for other types of apps from China in the future.