TikTok Sale or US Ban Looms as Senate Passes Foreign Aid Package

The US Senate has approved a foreign aid package that includes a measure that could force ByteDance, the Chinese-owned parent company of TikTok, to sell the popular social media app or face a ban in the United States. The bill now heads to President Biden for his signature, after which ByteDance would have up to a year to complete a sale of TikTok.

Lawmakers have expressed concerns that TikTok’s ownership by a China-based company could pose national security risks, citing a Chinese law that compels companies to share internal information with the government. TikTok has stated that it stores US user data in Singapore and is not subject to Chinese law, but some lawmakers remain skeptical.

The Senate vote came together due to clever political maneuvering in the House, which has now twice voted to pass the TikTok legislation. The first time, when brought as a standalone measure with a shorter divestment timeframe of six months, key Senate leaders remained noncommittal about its future in that chamber. By packaging it in the high-priority foreign aid package, the House effectively forced the Senate to take up the TikTok issue earlier than they might have otherwise. Extending the timeline for a deal to happen also secured more support in the Senate.

The bill gives ByteDance an initial nine months to complete a sale of TikTok, with the president having the discretion to extend this period by another three months should there be progress toward a deal. Still, legal challenges could possibly delay enforcement.

President Biden has already committed to signing the TikTok legislation should it make it through both chambers of Congress. In a statement released shortly after the Senate’s passage of the foreign aid package, Biden said, “I will sign this bill into law and address the American people as soon as it reaches my desk tomorrow so we can begin sending weapons and equipment to Ukraine this week.”

According to reports, TikTok has previously told employees that if the law is passed, the company will challenge it in court.

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