Deep Dives Level Up Newsletters Saved Articles Challenges

TikTok is going to outlast Trump, and test Biden

By Harriet Piercy

Jan 23, 2021


Back in 2020, the now ex-president Donald Trump demanded that TikTok’s Chinese owner, ByteDance, sell the viral video app. He claimed that the app raised national security concerns because of the Chinese government having access to American users’ data. Now that Trump is no longer president, Joe Biden is, and with the app still being widely used in the US, will Biden continue where Trump left off? And more importantly, how will Biden’s actions inform the rest of the world of how he plans to form his stance towards Chinese tech companies, and to use other words, future relationships that effect big tech production?

The fate of TikTok will not be decided by Trump, that much is for certain, but it will be by Biden. The new president hasn’t vocalised much about the company or the broader terms of ever growing influence of Chinese technology within the US yet, as his attention falls on other matters for his first 100 days in office, leaving the issue unresolved and potentially open for more growth in the near future.

The US government agreed on Tuesday 12 January 2021, that it would extend the deadline involving the discussions over restrictions that specifically target TikTok to 18 February. This is almost a full month after Biden settles into office.

Sam Sacks, a fellow at the think tank New America told The New York Times that “My gut is that they’re hoping to ride this out, and hope that this is on the back burner and they can kind of skirt by under the radar,” when asked about ByteDance’s approach to the final days of the Trump administration.

That being said, Biden has also called China’s president, Xi Jinping, a “thug” according to the same New York Times article. The president has said that America must be tougher toward Beijing in future, however has yet to show or share details as to how that toughness will be implemented. We can expect a slightly more consistent approach, compared to Trump’s fluctuating aggression over the topic during his term in office.

Both TikTok and Biden have not made any outright comments on their future, and TikTok is not the only company with a stake in Biden’s approach to Chinese tech giants. Repercussions from Biden’s actions in the near future however, will be huge for the entire world. Trump’s administration has continuously pressed American companies and allies to halt Chinese telecom equipment from 5G wireless networks, it also tried to keep semiconductor equipment from Chinese makers, and proceeded to focus on consumer apps, such as TikTok.

Another ban, among other apps, to fall onto Biden’s administration from Trump was the payment app Alipay, which is owned by the Chinese giant Alibaba. In this case, you might be wondering how a social app like TikTok could cause such a big drama, but what to take from this is that no app is really just an app, it’s much more than that.

Technology, data and especially semiconductor advancements, are arguably more valuable today than any other industry. Although we can’t assume what stance Biden will take, we can be sure that big tech is something to watch very closely. As tech trading tensions rise between the US and China, the semiconductor industry fears such a large disruption that it could affect the tech industry’s global supply chain.

Both sides of the Pacific ocean are trying to develop strategies to lessen the risk of running out of such technologies like semiconductors (which in this day and age, every single tech item we have relies on), whether that may be done through hoarding supplies or looking to shift location of production facilities. While firms such as Intel and Micron Technology still make these chips in the US, the industry’s centre of gravity has shifted to Asia.

The Taiwan Semiconductor Manufacturing Co (TSMC) has more than half of the overall market for contracting manufacturing chips, and a stronghold on the most advanced chip and manufacturing technology—in other words, without Asia, the rest of the world will be left behind in productive dust. So, what now, Biden?