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TikTok could become a US company to avoid being banned

TikTok could become a US company to avoid being banned
The White House adviser said TikTok could separate from parent company ByteDance at risk of being banned in the US because of security concerns.

Larry Kudlow, director of the US National Economic Council, White House economic adviser, said that separating ByteDance to operate as an American company would be more beneficial to TikTok instead of letting the US government ban it on the threat of Secretary of State Mike Pompeo on 7/7.

"We have not made a formal decision, but I think TikTok will separate from the parent company based in China to operate independently as an American company." 

Kudlow said. 

However, he did not specify how TikTok's operating structure would change, as well as whether the application was acquired by an American business.

For its part, TikTok has always denied any allegations, asserting that it has never sent data to China and will refuse if asked. They also sought ways to distance themselves from Douyin, the Chinese version of TikTok.

In May, ByteDance appointed Kevin Mayer, the former Disney leader, as the new CEO. Last week, it announced its withdrawal from Hong Kong after China announced a new national security law for the special zone.

Answering SCMP about Kudlow's statement, TikTok representative said that the company will not participate in speculation, reiterating that ByteDance is evaluating changes related to TikTok's operating structure, committing to complete. Full protection of user privacy and security.

On July 15, President Trump's chief of office said that the US administration was considering the national security risks of social media applications such as TikTok and WeChat, expected to take appropriate action in a matter of weeks.

In the fall of 2019, the U.S. Foreign Investment Commission (CFIUS) opened a ByteDance investigation of the acquisition of (the predecessor of TIkTok) in 2017.

If it is proven that TikTok sends data to the Chinese government, the agency could put pressure on ByteDance, the TikTok owner, to sell the app to non-Chinese companies.

Since TikTok was in crisis, rival applications such as Byte, Triller, Dubsmash and Likee have attracted a large number of users. Popular social network Snapchat is also testing TikTok-like navigation for public video content.

On July 16, NBC reported that Facebook is about to launch the Instagram Reels app to compete with TikTok.

Like TikTok, Instagram Reels allows users to post short, approximately 15-second videos with a library of filters, background music, or user contributions. It also has a "Featured Reels" section that displays popular videos similar to TikTok.

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