Rep. Zeldin Urges Treasury to Launch Investigation of Chinese-Owned TikTok
WASHINGTON - Today, Congressman Lee Zeldin (R, NY-1), Ranking Member of the House Foreign Affairs Subcommittee on Oversight and Investigations, urged the U.S. Department of the Treasury to investigate Chinese-owned TikTok’s reported willingness and obligation to censor content and limit free speech in accordance with the Chinese Communist Party (CCP), especially considering its parent company’s, ByteDance, recent acquisition of Musical.ly.
“As a result, an increasing number of Americans are now consuming media that has been scrubbed and sorted by the CCP,” Congressman Zeldin wrote. “In addition, TikTok is amassing large amounts of data and information about American citizens that could be used for improper purposes. TikTok’s user base primarily consists of young Americans, heightening the risk of malign influence. Of particular concern, allowing a company controlled by the CCP to operate a social media platform in the United States, acquire U.S. citizens’ data, manipulate young Americans’ media environment, and avoid transparency regarding their censorship practices creates an unacceptable risk of future electoral manipulation.”
A signed PDF of the letter is available here.
Full text of the letter is as follows:
Dear Secretary Mnuchin,
I am writing to express my deep concern about the Chinese social media platform, TikTok. Recent reports indicate TikTok’s willingness and obligation to censor content and limit free speech pursuant to the political and foreign policy objectives of the Chinese Communist Party (CCP). Moreover, TikTok’s accumulation of American citizens’ data through its acquisition of Musical.ly and its relaunch in the U.S. market suggests that the CCP may be surreptitiously and negatively influencing American civil society.
The CCP has significant authority over social media sites and applications that is resulting in influence operations and political interference. Chinese companies are required by law to regulate online behavior that deviates from the political goals of the CCP, obey the CCP’s censorship directives, and participate in China’s espionage. These policies regulate companies like TikTok in China and, increasingly, their overseas business.
Media have reported on TikTok’s moderation guidelines that allow content to be deleted or have its distribution limited for a variety of reasons, including for being perceived as “sensitive” by the CCP. For example, the pro-democracy movement in Hong Kong is a top news story that generates thousands of search results on other social media platforms, but remains noticeably absent from TikTok. These reports capture a chilling reality that a foreign government—one ruled by an authoritarian communist party—can use a private company to extend its censorship regime into free societies.
In addition to policy structures that require censorship and limit free speech, Chinese technology and social media companies are also under the implicit and explicit control of the Chinese government and CCP. ByteDance, the owner of TikTok, is no exception. In April 2018, ByteDance CEO, Zhang Yiming, issued a self-confession for alleged content violations by its platform, Jinri Toutiao. In a public letter, Mr. Zhang apologized for his failure to respect “socialist core values” and says his company will cooperate with, distribute, and amplify the voice of “authoritative media”—i.e. CCP propaganda. Such a public confession and vow to align with the CCP censorship apparatus raises salient concerns for how he and his leadership manage the domestic and international operation of TikTok.
TikTok’s rising popularity in the United States is increasing the vectors for CCP influence in American civil society. When ByteDance acquired Musical.ly, it reportedly migrated all Musical.ly’s users—estimated to be around 100 million monthly active users—to TikTok accounts. TikTok has reportedly also been downloaded more than 100 million times in the United States, including some users in military service.
As a result, an increasing number of Americans are now consuming media that has been scrubbed and sorted by the CCP. In addition, TikTok is amassing large amounts of data and information about American citizens that could be used for improper purposes. TikTok’s user base primarily consists of young Americans, heightening the risk of malign influence. Of particular concern, allowing a company controlled by the CCP to operate a social media platform in the United States, acquire U.S. citizens’ data, manipulate young Americans’ media environment, and avoid transparency regarding their censorship practices creates an unacceptable risk of future electoral manipulation.
Moreover, given the fundamental asymmetries in market access between the United States and China combined with the transformative role of data in powering AI algorithms and enhancing user experience, I have deep concerns that this uneven playing field will serve not only to allow Chinese platform companies to grow faster but also, by extension, further deteriorate freedom of expression and uncensored information in democratic societies.
The Committee on Foreign Investment in the United States has sharpened its focus on issues surrounding data in previous case reviews, and TikTok may present another such opportunity. To address the concerns outlined above, I urge that CFIUS launch a thorough national security review of TikTok’s acquisition of Musical.ly.
Thank you for your attention to this issue and I look forward to your response.