US senator wants Biden to block TikTok after Chinese gov't stake in subsidiary of parent company

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“We must also establish a framework of standards that must be met before a high-risk, foreign-based app is allowed to operate on American telecommunications networks and devices,' says Republican Senator Marco Rubio in a statement.

– a move that raises questions over how much influence Beijing is planning to wield in a tech sector reeling under an onslaught of regulatory action.

The 1% stake in Beijing ByteDance Technology, which holds some of the licenses for Douyin, the Chinese version of TikTok, as well as news aggregator Toutiao, was registered on April 30, according to corporate information app Tianyancha. It is held by WangTouZhongWen Technology, which is owned by three Chinese state entities including a fund backed by the country's main internet watchdog, the Cyberspace Administration of China , government shareholder data shows.

The stake does not give the Chinese government any share in TikTok, a source familiar with the matter said. TikTok is not available in China.amid a surge in antitrust probes and new rules for the industryA ByteDance representative said Beijing ByteDance Technology"only relates to some of ByteDance's China-market video and information platforms, and holds some of the licences they require to operate under local law.

 

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