China: ByteDance is the highest valued privately held company in the world, worth an estimated 75 billion dollars, and has been called “China’s Facebook” for its ginormous size and ownership of popular social networking apps. It launched the Chinese version of TikTok, Douyin, in 2016 and the international version in 2017. Since then, it has been downloaded 1.5 billion times and has been gaining a large number of active followers on Instagram and Snapchat.
TikTok has faced criticism for its ties to China during its rise as one of the most highly downloaded apps of all time. Sources have reported that moderators on the app were instructed to censor content that could offend the Chinese government, including mentioning the 1989 Tiananmen Square protests, the Tibetan Independence. The TikTok’s policies were outdated, and that it now uses “localized approaches” to moderation.
The current status reports that TikTok and its extension parent company ByteDance have been under intense scrutiny from US lawmakers because TikTok is trying to shed its Chinese image by setting up a new headquarters in a different country, the app was created by a Chinese firm.
Senators have called for an investigation into censorship on the app. And, also look into the app if it poses a national security threat. The US navy banned TikTok from being installed on government-issued phones. Reports have surfaced that TikTok is implementing strategies to distance itself from its Chinese roots.
Sources reported that potential countries for a new headquarter are Singapore, London, and Dublin. TikTok doesn’t currently have a headquarter, but its main office is in Los Angeles, and its chief executive works out of Shanghai.
A TikTok spokeswoman did not directly hint on whether the company was considering a new location for their HQ but said,
“We have been very clear that the best way to compete in markets around the globe is to empower local teams. TikTok has steadily built out its management in the countries where it operates”.
ByteDance has rejected rumors that it is considering selling off stakes of the app TikTok after Bloomberg reported yesterday that the tech giants were indeed thinking about a sale. But, Reuters confirmed that ByteDance has no current plans for sale at this moment.
A ByteDance spokesperson confirmed in an email,
“There has been no discussion about any partial or full sale of TikTok. These rumors are complete without merit.”
Bloomberg’s report emphasized that no formal decisions had been made about the future of TikTok, but it has been reported that some advisors were suggesting a partial sale. ByteDance denied such statements regarding the sale in an internal memo to employees. Zhu called the Bloomberg report “inaccurate” and stated that ByteDance had no intentions to sell part or all of its stakes in TikTok.
“I want to assure you that we have had no discussions with potential buyers of TikTok, nor do we have any intention to,”
he added.
TikTok has made strategical moves that suggest it is looking to expand its US presence and get rid of the legal probe as a perceived security threat. The company is reportedly building up a Silicon Valley presence, moving into offices that used to be occupied by now Facebook-owned Whatsapp and hiring employees from Facebook, Apple, and Google.
