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US tells Chinese TikTok owners to sell or face possible ban

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The Biden administration is threatening a potential U.S. ban on TikTok if its Chinese owners refuse to sell their stakes in the video-sharing app, a source close to the company told NBC News Thursday.

The source, however, warned that the company does not view the administration’s decision as a final order. Negotiations between TikTok and US government officials have been going on for years.

Administration requirement first reported The Wall Street Journal is signaling a major change in US stance on Beijing-based ByteDance Ltd., which owns the popular video-sharing app.

The White House and Treasury Department declined to comment on NBC News.

A TikTok spokesperson said in a statement: “If the goal is to protect national security, the takeover will not solve the problem: the change of ownership will not impose any new restrictions on data flows or access to them. The best way to address national security concerns is to transparently protect US user data and US-based systems with the robust third-party monitoring, validation, and verification that we are already implementing.”

Any sale by ByteDance Ltd. must be approved by the Chinese government. On Thursday, a Foreign Office spokesman said the US has not provided any evidence that TikTok poses a threat to its national security.

“The US side must stop spreading false information on the issue of data security, stop the unreasonable suppression of relevant enterprises, and provide an open, honest, fair and non-discriminatory business environment for enterprises of all countries so that they can invest and work in the United States,” spokesman Wang Wenbin said at the regular briefing.

Brooke Oberwetter, a spokesperson for TikTok, told NBC News last week that the Biden administration already has the power to control the app through the Committee on Foreign Investment in the United States.

News of the administration’s demand comes a week after the White House approved bipartisan bill in Congress, allowing the federal government to regulate and even ban foreign-made technology, including TikTok. TikTok chief executive Show Zi Chu is due to testify before Congress next week.

In late December, Biden signed into law a law banning the use of TikTok on government devices.

Republicans have repeatedly criticized the Biden administration for handling TikTok-related security issues. That criticism intensified last month when some GOP critics tried to link the app to a suspected Chinese spy balloon that flew across the United States.

Opponents of a potential TikTok ban counter that banning the app from phones in the US is not a comprehensive solution to data security concerns.

In the last year of his presidency, Donald Trump tried to ban downloads of TikTok, but the Commerce Department eventually dropped the order forcing it to shut down after a lawsuit.

Jace Zhang, Jennifer Jett another Summer concept contributed.

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He previously passed the American Rescue Plan, a nearly $2 trillion economic stimulus bill aimed at alleviating the pandemic. He signed a $1.2 trillion infrastructure package and the first gun control law in decades. He is undertaking a massive student debt relief initiative now before the Supreme Court, and last August he signed into law the historic Climate Change and Public Health Act.

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Why did we write this

President Joe Biden appears to be changing stance ahead of the 2024 presidential campaign, moving to the center on issues like crime, oil and immigration.

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What gives? In fact, none of these latest moves should come as a surprise, longtime Biden watchers say. For decades a Washington regular, both in the Senate and as Vice President, he was a creature in the middle, often willing to work through the aisle and make deals.

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