House China panel chair Moolenaar raises concerns over TikTok deal; warns on reliance on ByteDance algorithm and potential Chinese government influence

House China panel chair Moolenaar raises concerns over TikTok deal; warns on reliance on ByteDance algorithm and potential Chinese government influence

House China panel chair, Rep. Mike Moolenaar, has expressed concerns over the ongoing negotiations surrounding TikTok's future in the United States. Moolenaar, a key figure in the U.S. Congress, has raised alarms about the potential reliance on ByteDance's algorithm and the possible influence of the Chinese government in any deal.

Moolenaar's concerns come as China has agreed that a divested TikTok could use its algorithm, but the specifics of how this would work remain uncertain. Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, announced that there was consensus on the authorization of TikTok’s algorithm, a main sticking point in the deal . However, the exact details of how this algorithm would be used and who would oversee it are still unclear.

Moolenaar has warned that any deal that includes the algorithm from ByteDance could be problematic. He has stated that "it wouldn’t be in compliance if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance," according to a committee spokesperson . This stance underscores the ongoing debate over the security and privacy concerns surrounding TikTok's algorithm.

The House Select Committee on China has also emphasized the importance of ensuring that TikTok's U.S. operations are free from Chinese government influence. Rep. Raja Krishnamoorthi, the committee’s ranking Democrat, has stated that "underpinning all of our concerns is the Chinese Communist Party’s access to American data" . This highlights the committee's focus on protecting U.S. user data and content security.

The negotiations between the U.S. and China are ongoing, with the two sides aiming to reach a deal by December 16 . However, the uncertainty surrounding the algorithm's role in the deal has added a layer of complexity to the negotiations. The potential involvement of Oracle Corp. and other investors in overseeing TikTok's U.S. operations has also raised questions about the platform's future and its compliance with U.S. national security concerns .

Moolenaar's concerns are a reflection of the broader debate over TikTok's future in the U.S. and the need to balance the platform's popularity with the potential risks associated with its Chinese ownership. As the negotiations continue, investors and financial professionals will be closely watching the developments to understand the potential impact on TikTok's valuation and its long-term prospects in the U.S. market.