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HomePoliticsU.S. tells TikTok's Chinese owners to sell stakes or face possible ban

U.S. tells TikTok’s Chinese owners to sell stakes or face possible ban

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

The source, however, cautioned that the company did not see this as a final order. 

The administration’s demand, first reported by the Wall Street Journal, signals a significant shift in the U.S. stance toward Beijing-based ByteDance Ltd., which owns the popular video sharing app.

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

In a statement, a spokesperson for TikTok said: “If protecting national security is the objective, divestment doesn’t solve the problem: a change in ownership would not impose any new restrictions on data flows or access. The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing.”

Any divestiture by ByteDance Ltd. would have to be approved by the Chinese government. A Foreign Ministry spokesperson said Thursday that the U.S. had failed to provide any evidence that TikTok poses a threat to its national security.

“The U.S. side should stop spreading false information on the issue of data security, stop unreasonably suppressing the enterprises concerned, and provide an open, fair, just and non-discriminatory business environment for enterprises of all countries to invest and operate in the U.S.,” the spokesperson, Wang Wenbin, said at a regular news briefing.

Brooke Oberwetter, a spokesperson for TikTok, told NBC News last week that the Biden administration already has the power to oversee 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 endorsed a bipartisan bill in Congress that would permit the federal government to regulate and even ban technology produced abroad, including TikTok. TikTok’s chief executive, Shou Zi Chew, is set to testify before Congress next week.

At the end of December, Biden signed into law legislation that prohibits TikTok on government devices.

Republicans have repeatedly criticized the Biden administration’s handling of security concerns surrounding TikTok. Those criticisms grew louder last month when some GOP critics attempted to tie the app to the suspected Chinese spy balloon that made its way across the United States.

Opponents of a potential TikTok ban have countered that barring the app from U.S. phones is not a comprehensive solution to data security concerns.

During the final year of his presidency, Donald Trump tried to ban downloads of TikTok, but the Commerce Department ultimately backed down from an order forcing it to shut down, following a lawsuit.

Jace Zhang, Jennifer Jett and Summer Concepcion contributed.

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