Tech Industry Holds Its Breath as Trump’s Return to the White House Throws TikTok’s Future into Question
The recent presidential election has sent shockwaves through the tech industry, particularly for TikTok, whose CEO Shou Zi Chew has been noticeably silent. With President Joe Biden’s law requiring China’s ByteDance to sell TikTok by January 19, the app’s future in the US hangs in the balance. However, Trump’s return to the White House may provide a reprieve for TikTok.
A Shift in Fortunes for TikTok?
During his campaign, Trump voiced opposition to the TikTok ban, citing both national security and data privacy concerns, as well as the app’s benefits. This stance may have been influenced by his meeting with billionaire Jeff Yass, a major investor in ByteDance, in February. Yass’s trading firm owns a 15% stake in ByteDance, making him a significant player in the company’s fate.
A Potential Lifeline for TikTok
If ByteDance fails to comply with the January deadline, Trump could potentially call on Congress to repeal the law or introduce a more “selective enforcement” of the law, allowing TikTok to continue operating in the US without penalties. This approach would be akin to police officers not always enforcing every instance of jaywalking, according to Cornell University professor Sarah Kreps.
TikTok’s Wait-and-See Strategy
Meanwhile, Chew has remained quiet since Trump’s victory, adopting a neutral approach and waiting to see how the situation unfolds. China business expert Long Le notes that it’s hard to predict Trump’s next move, given his contrarian nature.
Trump’s Changing Views on Social Media
Trump’s campaign comments suggest he’s more concerned with TikTok rival Meta, labeling it “an enemy of the people.” However, his negative views on Meta may have shifted after CEO Mark Zuckerberg’s congratulatory comments following Trump’s win. This could lead Trump to revert to his American economic nationalism and maintain support for the Chinese ban.
Political Calculations
Maintaining support for the TikTok ban could win Trump political favor with lawmakers concerned about China’s global influence. However, it’s unclear how much damage this would do to his administration, given that many politicians are reluctant to publicly criticize him.
The Power of Social Media
Since launching his TikTok account, Trump has amassed over 14 million followers. Given his social media savvy, Trump may not want to make a decision that results in him losing public attention and influence on the platform. As the situation unfolds, one thing is certain – the tech industry will be watching closely to see how Trump’s return to the White House affects TikTok’s future.
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