U.S. House passes bill that would lead to a TikTok ban if Chinese owner doesn’t sell

The U.S. House of Representatives on March 13 passed a bill that would lead to a nationwide ban of the popular video app TikTok if its China-based owner doesn’t sell, as lawmakers acted on concerns that the company’s current ownership structure is a national security threat.

The bill, passed by a vote of 352-65, now goes to the Senate, where its prospects are unclear.

TikTok, which has more than 150 million American users, is a wholly owned subsidiary of Chinese technology firm ByteDance Ltd.

The lawmakers contend that ByteDance is beholden to the Chinese government, which could demand access to the data of TikTok’s consumers in the U.S. any time it wants. The worry stems from a set of Chinese national security laws that compel organizations to assist with intelligence gathering.

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“We have given TikTok a clear choice,” said Rep. Cathy McMorris Rodgers, R-Wash. “Separate from your parent company ByteDance, which is beholden to the CCP (the Chinese Communist Party), and remain operational in the United States, or side with the CCP and face the consequences. The choice is TikTok’s.”

Only the first step

The U.S. House of Representatives passage is only the first step. The Senate would also need to pass the measure for it to become law, and lawmakers in that chamber indicated it would undergo a thorough review. Senate Majority Leader Chuck Schumer, D-N.Y., said he’ll have to consult with relevant committee chairs to determine the bill’s path.

U.S. President Joe Biden has said if Congress passes the measure, he will sign it.

The House vote is poised to open a new front in the long-running feud between lawmakers and the tech industry. Members of Congress have long been critical of tech platforms and their expansive influence, often clashing with executives over industry practices. But by targeting TikTok, lawmakers are singling out a platform popular with millions of people, many of whom skew younger, just months before an election.

Opposition to the bill was also bipartisan. Some Republicans said the U.S. should warn consumers if there are data privacy and propaganda concerns, while some Democrats voiced concerns about the impact a ban would have on its millions of users in the U.S., many of which are entrepreneurs and business owners.

“The answer to authoritarianism is not more authoritarianism,” said Rep. Tom McClintock, R-Calif. “The answer to CCP-style propaganda is not CCP-style oppression. Let us slow down before we blunder down this very steep and slippery slope.”

National security implications

Ahead of the House vote, a top national security official in the Biden administration held a closed-door briefing with lawmakers to discuss TikTok and the national security implications. Lawmakers are balancing those security concerns against a desire not to limit free speech online.

“What we’ve tried to do here is be very thoughtful and deliberate about the need to force a divestiture of TikTok without granting any authority to the executive branch to regulate content or go after any American company,” said Rep. Mike Gallagher, the bill’s author, as he emerged from the briefing.

TikTok has long denied that it could be used as a tool of the Chinese government. The company has said it has never shared U.S. user data with Chinese authorities and won’t do so if it is asked. To date, the U.S. government also has not provided any evidence that shows TikTok shared such information with Chinese authorities. The platform has about 170 million users in the U.S.

The security briefing seemed to change few minds, instead solidifying the views of both sides.

“We have a national security obligation to prevent America’s most strategic adversary from being so involved in our lives,” said Rep. Nick LaLota, R-N.Y.

But Rep. Robert Garcia, D-Calif., said no information has been shared with him that convinces him TikTok is a national security threat. “My opinion, leaving that briefing, has not changed at all,” he said.

“This idea that we’re going to ban, essentially, entrepreneurs, small business owners, the main way how young people actually communicate with each other is to me insane,” Garcia said.

“Not a single thing that we heard in today’s classified briefing was unique to TikTok. It was things that happen on every single social media platform,” said Rep. Sara Jacobs, D-Calif.

Republican leaders have moved quickly to bring up the bill after its introduction last week. A House committee approved the legislation unanimously, on a 50-vote, even after their offices were inundated with calls from TikTok users demanding they drop the effort. Some offices even shut off their phones because of the onslaught.

Lawmakers in both parties are anxious to confront China on a range of issues. The House formed a special committee to focus on China-related issues. And Schumer directed committee chairs to begin working with Republicans on a bipartisan China competition bill.

Senators are expressing an openness to the bill but suggested they don’t want to rush ahead.

“It is not for me a redeeming quality that you’re moving very fast in technology because the history shows you make a lot of mistakes,” said Sen. Ron Wyden, D-Ore.

In pushing ahead with the legislation, House Republicans are also creating rare daylight between themselves and former President Donald Trump as he seeks another term in the White House.

Trump has voiced opposition to the effort. He said Monday that he still believes TikTok poses a national security risk but is opposed to banning the hugely popular app because doing so would help its rival, Facebook, which he continues to lambast over his 2020 election loss.

As president, Trump attempted to ban TikTok through an executive order that called “the spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China (China)” a threat to “the national security, foreign policy and economy of the United States.” The courts, however, blocked the action after TikTok sued, arguing such actions would violate free speech and due process rights.

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President Biden says shutdown won’t be his fault. Will Americans agree?

Staring down a likely government shutdown, the White House wants to make sure any blame falls at the other end of Pennsylvania Avenue — specifically on House Republicans.

After all, it’s House Republicans who have been paralysed by their inability to pass a funding package, and Republicans who don’t want to uphold a bipartisan spending agreement from earlier this year.

President Joe Biden is hoping the rest of the country will see things the same way. It’s a murky proposition at a time of extreme political polarisation, with many Americans dug into their partisan corners regardless of the facts of the matter.

A shutdown would arrive at a tenuous moment for Mr. Biden, who already faces low poll numbers and concerns about the economy as he seeks a second term in office, partially on the pitch that he offers steady stewardship in Washington.

If no spending bill passes Congress by the end of Saturday, federal workers stop getting paid, air travel could be ensnarled by staffing shortages and food benefits will pause for some of the country’s most vulnerable families.

Asked on Friday if Mr. Biden should bear any responsibility for the shutdown, White House budget director Shalanda Young said “absolutely not” and accused Republicans of being cavalier with people’s lives.

“The guy who picks up the trash in my office won’t get a paycheck,” she said. “That’s real. And that’s what makes me angry.”

Anita Dunn, Mr. Biden’s senior adviser, blamed the looming shutdown on “the most extreme fringe” of House Republicans in a presentation to allies on Thursday. She said “we have to hold them accountable” and “make sure they pay the political price.”

Speaking from the White House, she criticised adherents of former President Donald Trump’s “Make America Great Again” coalition — but she stopped just short of using the MAGA acronym.

“We’re not allowed to actually use the M-word here in the White House right now,” said Ms. Dunn, referring to legal guidance intended to ensure compliance with the Hatch Act, which prevents political activity while administration officials are on the job. “But everyone here knows what I mean. It’s a four-letter word. It begins with M. It ends with A. It’s got an AG in the middle.”

Ms. Dunn added, “So those people are the ones who are refusing to do their job and shutting the government down for no reason.”

The current crisis is a sequel to the standoff over raising the debt limit earlier this year. House Speaker Kevin McCarthy, R-Calif., refused to authorize the federal government to issue debt unless Biden negotiated over spending cuts.

After resisting, Mr. Biden agreed to budget talks, reaching a bipartisan deal that averted a first-ever default. But now a group of House Republicans want even deeper spending cuts and they’ve threatened to oust Mr. McCarthy from the speaker’s job if they don’t get what they want.

So far, the White House has refused to negotiate, stressing that an agreement was already in place and House Republicans are refusing to honor its terms. Press secretary Karine Jean-Pierre said Friday that Republicans were “solely to blame” for any shutdown, calling that “a basic fact.”

Administration officials have also been highlighting that a shutdown would cause lapses in paychecks for military service members and delays in assistance for victims of natural disasters.

The White House messaging effort has received no shortage of unintended help from Republicans themselves, with moderates criticizing their hard-right colleagues.

Rep. Mike Lawler, R-New York, said “just throwing a temper tantrum and stomping your feet — frankly, not only is it wrong — it’s just pathetic.”

Even Mr. McCarthy acknowledged recently that some members of his caucus “just want to burn the whole place down.”

At a Wednesday fundraiser outside San Francisco, Mr. Biden said Mr. McCarthy cares more about protecting his job as speaker than keeping the government open.

“The fact is that I think that the speaker is making a choice between his speakership and American interests,” Mr. Biden said.

While Washington endured partial shutdowns as long as 35 days during Mr. Trump’s presidency, Biden warned his donors that Republicans could shutter the government for weeks, if not months.

“It would be disastrous for us, especially if it became long-term,” he said.

Romina Boccia, a veteran of Washington fiscal debates and the director of budget and entitlement policy at the Cato Institute, said this situation is much different than the government shutdown in 2013.

At that time, Republicans were united around trying to block implementation of the Affordable Care Act. And even then, it didn’t work. Once the shutdown happened, Boccia recalled, “it didn’t provide any more leverage,” and “Republicans caved and reopened the government when they learned the hard way that they weren’t going to get their way.”

This time, she said, “it’s not clear what they’re trying to get out of a government shutdown. It just seems dysfunctional all around.”

Some polls conducted ahead of the expected shutdown suggest Biden and Democrats in Congress could bear a substantial portion of the blame if a closure occurs. But U.S. adults generally have two conflicting priorities regarding the federal budget.

About 60% of them say the government spends too much money, but majorities also back more money for Social Security, health care and infrastructure, according to a survey by the Associated Press and NORC Center for Public Affairs Research. This enables some Republicans to say the public backs them on cuts, but it also justifies spending on programs that are projected to contribute to higher deficits in the years to come.

The likely shutdown overlaps with Biden ramping up next year’s reelection campaign. For the past few months, the president has taken full ownership of the economy’s performance as inflation has dropped while unemployment has stayed low.

But an emerging set of risks are on the horizon and most U.S. adults still feel pessimistic about the country’s direction.

Mortgage rates are at a 22-year high. Oil prices are nearly $91 a barrel, pushing up the cost of gasoline. Unionized autoworkers are likely entering a third week of strikes. Student loan repayments are restarting. Pandemic-related money for child care centers is set to end, potentially triggering a set of closures that could hit working parents.

A government shutdown would be another dose of chaos that could cause pain for millions of households. White House officials who are ready to blame Republicans say they’d rather see a shutdown avoided.

“I’m still hoping,” Young said Friday. “I’m still remaining an optimist.”

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