Steven Mnuchin, former U.S. Treasury Secretary, said on Thursday to CNBC that he intends to organize an investment group to buy TikTok; a decision announced one day after the House of Representatives voted to ban the popular app in the U.S. The U.S. House of Representatives passed a bipartisan bill on Wednesday that would subject the company owning the TikTok app to a ban on operating in the U.S. if it refuses to sell the social media platform. TikTok is a subsidiary of a Chinese technology company called ByteDance. Mnuchin, who served in the cabinet of former President Donald Trump, told CNBC that TikTok, with over 170 million American users, 'must be owned by an American business. The Chinese would never allow an American company to own such an app in China.' He did not provide details on who might be included in the potential investor group or the valuation of the app. Given concerns that the current ownership and use of TikTok pose a threat to U.S. national security, the proposal presented in the House regarding the necessity for a change of ownership or a ban was approved with 352 votes in favor and 65 against, surpassing the two-thirds majority required. Senate lawmakers have stated they will thoroughly review the House resolution, and Chuck Schumer, the Senate Majority Leader, has indicated that he will consult with the heads of the relevant committees to determine the path of the proposal. Although it is unclear whether this proposal will receive the same level of support in the Senate as it did in the House, President Joe Biden has stated that he will sign the law if it comes to the White House after Senate approval. TikTok has denied using the app as a tool for the Chinese government and stated that it has never shared U.S. user data with Chinese authorities and would not do so if requested. In April 2023, the Committee on Foreign Investment in the U.S., led by the Treasury Department, asked the Chinese owners of TikTok to sell their shares or face the possibility of a ban; however, no action was taken. The bipartisan vote in the U.S. House of Representatives: TikTok's operations will be banned 'if ownership is not transferred.' U.S. lawmakers to ByteDance: If you do not transfer ownership of TikTok, its operations will be banned.
One Day After House Resolution, Former U.S. Treasury Secretary Says He Is Looking to Buy TikTok
Former U.S. Treasury Secretary Steven Mnuchin announced plans to form an investment group to purchase TikTok, following a House resolution to ban the app unless it is sold. The bipartisan bill reflects growing concerns over national security related to the app's Chinese ownership. This development highlights the ongoing tensions between the U.S. and China regarding technology and data privacy.
👥 Key Players
📰 What Happened
Steven Mnuchin announced plans to form an investment group to buy TikTok, following a House resolution that would ban the app unless it is sold due to national security concerns. The House passed a bipartisan bill requiring a change of ownership for TikTok to continue operating in the U.S.
- The House of Representatives voted 352 to 65 in favor of a bill that would ban TikTok unless it is sold.
- Mnuchin argues that TikTok must be owned by an American business to ensure national security.
💡 Why It Matters
📚 Background
The U.S. has been increasingly concerned about data privacy and national security issues related to foreign-owned technology platforms, particularly those from China.
🏷️ Entities Mentioned
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