As the United States edges closer to enforcing a divestiture of TikTok’s American operations from its Chinese parent company ByteDance, experts warn that the deal does not amount to a complete strategic victory for Washington. Despite mounting legislative pressure and national security concerns driving the push for a sale, China is far from powerless in shaping the platform’s future. In fact, Beijing may still retain critical forms of leverage that could influence the outcome of any attempted separation.
The move to force ByteDance to sell TikTok or face a nationwide ban in the United States has been gaining momentum for over a year, accelerated by bipartisan support in Congress and continued scrutiny from federal regulators. At the heart of the matter is the growing concern that TikTok, through its parent company in China, could potentially allow the Chinese government access to user data or manipulate content on behalf of Beijing’s interests. While TikTok has repeatedly denied these allegations and insists that U.S. user data is stored securely on domestic servers, lawmakers remain unconvinced.
Earlier this year, the House of Representatives passed a bill that would compel ByteDance to divest from TikTok within a set timeframe or face removal from American app stores. President Joe Biden has indicated he would sign such a bill into law. However, the complexity of the situation runs far deeper than the headline suggests.
According to Dr. Lin Mei, a leading Chinese tech policy analyst based in Beijing, the notion that the United States can force a clean and complete break between TikTok and China is overly simplistic.
“When two global powers are locked in a technological arms race, there are no clean exits,” Dr. Mei said in an interview. “Even if ownership changes hands, the underlying technology, the talent pool, the intellectual property, and the regulatory framework remain deeply intertwined.”
At the center of this intricate dispute lies the question of TikTok’s recommendation algorithm. This is the core technology that makes the app’s For You Page so addictive and effective in delivering highly personalized content to its users. U.S. lawmakers have made it clear that any sale of TikTok must include access to this proprietary algorithm. Without it, a U.S. version of TikTok could lose the very element that made the app a global sensation.
But gaining access to the algorithm is not as straightforward as it seems. In 2020, the Chinese government updated its export control laws to restrict the transfer of certain technologies abroad, including artificial intelligence-powered recommendation systems. This means that any attempt to transfer TikTok’s algorithm to a foreign buyer would require approval from Chinese regulators.
“Control over the algorithm gives China a veto power of sorts,” said Emily Carter, a senior fellow at the Center for Strategic Technology in Washington. “Even if ByteDance wanted to sell, the Chinese government could block the export of the key technology, effectively crippling any U.S. acquisition effort.”
This regulatory roadblock is not the only challenge. ByteDance itself is resisting the push for a sale. The company has filed legal challenges in the U.S., arguing that forcing a divestiture would violate the constitutional rights of both the company and its users. It claims that TikTok is not just a business platform but a cultural and political forum used by millions of Americans to express themselves.
Furthermore, ByteDance maintains that it is already doing enough to address U.S. security concerns. Through its initiative known as Project Texas, the company says it has localized American user data storage within the United States, under the oversight of U.S. based personnel. However, critics argue that such measures are not foolproof and do not address concerns about the origin and ongoing development of the app’s software.
In the meantime, China appears to be playing a long game. Even if TikTok’s U.S. operations are sold, ByteDance will likely retain control of the app in over 150 other countries where it continues to thrive. The global market for short-form video remains enormous, and TikTok’s dominance in regions like Southeast Asia, Europe, and Latin America ensures that the company retains global influence, regardless of its status in the U.S. market.
Analysts also point out that Beijing has an interest in framing any forced sale of TikTok as part of a broader geopolitical contest, portraying it to domestic audiences as another example of American aggression against Chinese innovation. This narrative plays well within China and helps reinforce nationalistic support for the government’s tech policy, especially as it continues its efforts to become a global leader in artificial intelligence and digital infrastructure.
In this broader context, the TikTok issue is not merely a corporate deal or a regulatory dispute it is a reflection of the wider technology and power struggle between the United States and China. And while Washington may succeed in altering the ownership structure of TikTok within its borders, the question of who ultimately controls the tools, data, and talent that drive the platform remains unresolved.
“The United States might win the legal battle, but the strategic contest is far from over,” Carter noted. “China still holds critical cards, and how it plays them will determine how much control it truly loses.”
As the legal and political wrangling over TikTok’s future unfolds, both sides appear to be digging in for a long and uncertain fight. For now, one thing is clear: while Washington has taken the offensive, all is not lost for China not yet.
source: asiatimes.com