China's ByteDance moves to ring fence TikTok app amid US probe: sources
- Beijing-based ByteDance, which owns TikTok, has stepped up moves to separate the short video app from much of its Chinese operations, sources told Reuters
- It is also hiring more US engineers to reduce its reliance on staff in China, according to people familiar with the matter
ByteDance has stepped up efforts to separate its social media app TikTok from much of its Chinese operations, amid a US national security panel’s inquiry into the safety of the personal data it handles, people familiar with the matter said.
The Chinese technology company is seeking to provide assurances to the Committee on Foreign Investment in the United States (CFIUS) that personal data held by TikTok, which is widely popular with US teenagers, is stored securely in the United States and will not be compromised by Chinese authorities, the sources said.
ByteDance’s response represents a key test of corporate China’s ability to operate businesses in the United States that handle personal data, as US President Donald Trump’s trade war with China fans suspicion between the world’s two largest economies.
ByteDance is hoping to avoid the fate of Chinese gaming company Beijing Kunlun Tech Co Ltd, which said in May it would agree to a CFIUS request to divest popular gay dating app Grindr following concerns about the security of personal data. It is also exploring exiting its investment in Grindr through an initial public offering.
ByteDance started to separate TikTok operationally before CFIUS approached it in October because it wanted some of its staff to focus on TikTok, according to the sources.