>> The Chinese parent company of
tiktok says the Biden white
house is pressuring it to sell
to an American firm or face a
national ban.
Nick schifrin reports on the
national security concerns of
the hugely popular video app.
>> 21st century flower power.
>> It doesn't taste bad.
>> Communicative cappuccinos.
A nursing home rendition of
Rihanna.
Tiktok's diverse viral
sensations have combined access
to music with editing tricks
made easy to create a social
media monster.
Tiktok has 1.5 billion users and
its single most popular video
has been watched 2.1 billion
times.
The U.S. Government says their
sleight-of-hand is not like this
American magician.
But by their Chinese parent
company by dance and a national
security threat to users and
their data.
>> They use tiktok to control
data on millions of users.
>> The vice chairman asked FBI
director about beijing's control
of tiktok.
>> Could they use it to drive
narratives to divide Americans
against each other?
Yes.
>> This is a tool ultimately
within the control of the
Chinese government, and it
screams out national security
concerns.
>> The primary concern is
Chinese law forces bite dance to
collaborate with the Chinese
government and there is no
independent judiciary for
appeal.
>> Very American company.
>> The pressure to sell is three
years old across two
administrations led by the
committee on foreign investment
in the U.S.
Tiktok says it has already
answered U.S. Concerns in a
process known as project Texas,
by creating a new company that
reports to the U.S. Government
and whose employees are subject
to U.S. Approval, and allowing
U.S. Technology company Oracle
to control all user data and
review the algorithm and
content.
Tiktok said in a statement
divestment doesn't solve the
problem.
A change in ownership would not
impose any new restrictions on
data flows are access.
>> Before there was tiktok,
there was cte.
>> The new bill the
administration supports would
allow the commerce department to
ban tiktok.
>> It is important to establish
a holistic and methodical
approach challenging it.
>> Why the sudden move to ban
tiktok?
>> Users have responded to the
possible ban with criticism and
content.
>> Never mind, no it is not.
>> Now it is only being banned a
little bit.
>> It is being banned a lot.
>> The newshour has its own
tiktok and its own tiktok star.
Why do you think tiktok has
become so popular?
>> They get to enter somebody
else's world, or feel more
closely connected.
It has almost become this
community where it is unfiltered
and authentic that it is very
real.
Whether it is your second job or
full-time job, the risk of
tiktok being banned is a huge
concern for these people and
where they will go after that.
>> While tiktok is the relative
new kid on the block, its
creators and users are loyal.
For the national security
committee looking for threats
that found them in the app and
because of its Chinese parent
company.
So tiktok might not have nine
lives, despite being the single
most downloaded app in the
world.
For the pbs newshour, Nick
schifrin.
>> Could this be the beginning
of the end for tiktok in the
U.S.?
In the U.S. Government's
concerns about the app be
mitigated?
A public policy official at
Facebook before becoming a
professor at the university of
North Carolina chapel hill and
director of the center on
technology policy.
The center is funded by
foundations and tech companies
such as Google, apple, and
tiktok.
Welcome to the newshour.
Let's start with what Nick was
reporting.
Tiktok had been negotiating with
the U.S. Government for years,
already agreed to a number of
requests laid out by the U.S.
Government.
What change led the Biden
administration to harden their
stance and issue this ultimatum
that the bite dance CEO says he
received.
>> It is not clear what changed,
and if what changed with more
substantive, related to more
harm related to tiktok or risk
tiktok poses to the U.S., or a
political change in how the
parties receive risk related to
being perceived as being soft on
China.
It is probably more likely it
was political and it is still
unclear exactly what about
project Texas and the rumored
agreement with tiktok was
insufficient from the U.S.
Government's perspective.
>> Tell me about those political
concerns.
What is the political landscape?
>> Republicans and Democrats
agree it is not good to be
perceived as soft on China.
There is deep concern about how
the Chinese government might
approach a technology company
with deep roots in the U.S. User
base.
>> A senate Intel source has
shared what we believe our
lingering concerned, they are
mainly around data and content.
Specifically much of the content
and associated metadata can be
out -- access outside of the
media, including by mainland
China.
And the algorithm determines
what Americans can see, would be
driven and dictated by engineers
in China.
Are those valid concerns to you,
and have we seen evidence?
>> The main feature of project
Texas is to house U.S. User data
within the U.S., locate the
algorithm within the U.S., and
locate the content operation
function.
It would make each of those
three components subject to an
audit process, whether there are
different auditors and monitors
who try and ensure the
functioning of project Texas was
aligned with how tiktok said it
would function.
It is still certainly possible
the project would not fully
funded as intended or there is a
remaining risk.
I think the risk is certainly
possible, tiktok has created an
honor system.
The idea is the monitors can
catch it.
In the world of technology and
tech policy, it is hard to
ensure there is zero risk.
Why would bite dance have been
so willing to negotiate and
acquiesce?
>> That is a really good
question.
The main thing he's interested
in is a strong competitor like
apple, Google, YouTube.
Perception is the best way to
make that happen.
It is unclear if that has
happened in practice.
What will be useful would be to
have the kind of process in
place to develop evidence, to
understand better whether the
national security risk and harm
alleged is actually there in
reality.
>> Are there broader
implications we should concern?
Does it open the door to other
countries, India for example,
taking a similar attack and
saying we want to control what
Google is able to do here in
India?
>> I started working in the tech
industry in 2011.
At that point, the tech industry
was concerned about data
localization.
The idea China or India, Brazil,
Germany, France, the U.K., would
require a U.S. Tech company to
store data locally.
Project Texas is essentially a
very sophisticated data
localization model where tiktok
will be localizing certain
components of his business
within the United States.
That is the sort of thing the
tech industry and U.S.
Government have feared and
advocated against for a long
period of time.
If the government were to
require it, if tiktok were to do
it within the U.S., we will see
countries like India, Germany,
like Brazil reciprocating and
asking for project Texas on
their soil.
>> Given where we are, either a
divestment or a ban, what is the
likely outcome >>?
-- Outcome?
>> A an has been talked about,
we will -- it would be unlikely.
It would be very politically
challenge for the U.S.
Government to achieve a ban.
Many in the U.S. Use tiktok and
love tiktok.
They would immediately feel the
consequences of the technology
beingbanned and limited access
to a two they potentially use
every day.
Divestment is trickier.
It is unclear if there would be
a strong constituency.
I don't think there were that
many tiktok users who would care
that much who owns their
product.
Questions about divestment
continue to be whether there is
evidence sufficient to support
an action of that magnitude.
A significant remedy being put
into action on whether there is
evidence to support it.
>> The director of the center on
technology at the university of
North Carolina chapel hill.