WASHINGTON, March 13 (Reuters) - The U.S. House of
Representatives overwhelmingly passed a bill on Wednesday that
would give TikTok's Chinese owner ByteDance about six months to
divest the U.S. assets of the short-video app, or face a ban, in
the greatest threat to the app since the Trump administration.
The bill passed 352-65 in a bipartisan vote, but it faces a
more uncertain path in the Senate where some favor a different
approach to regulating foreign-owned apps posing security
concerns. Senate Majority Leader Chuck Schumer said the Senate
will review the legislation.
The measure is the latest in a series of moves in Washington
to respond to U.S. national security concerns about China, from
connected vehicles to advanced artificial intelligence chips to
cranes at U.S. ports.
"This is a critical national security issue. The Senate must
take this up and pass it," No. 2 House Republican Steve Scalise
said of TikTok on social media platform X. White House press
secretary Karine Jean-Pierre added later that the Biden
administration also wanted to see "the Senate take swift
action."
The fate of TikTok, used by about 170 million Americans, has
become a major issue in Washington where lawmakers have
complained their offices have been flooded with calls from
TikTok users who oppose the legislation.
TikTok CEO Shou Zi Chew, who a source briefed on the matter
said is visiting Washington this week, said in a video posted
after the vote the legislation if signed into law "will lead to
a ban on TikTok in the United States... and would take billions
of dollars out of the pockets of creators and small businesses."
He added the company will exercise its legal rights to
prevent a ban. The bill gives the company 165 days to file a
legal challenge after it is signed by President Joe Biden, who
said last week he would do so.
The political climate in Washington, at a time when many
politicians do not want to be seen as soft on China during an
election year, increasingly favors the bill. Still, there are
concerns about the impact of any ban on younger voters.
White House national security adviser Jake Sullivan on
Tuesday asked "Do we want TikTok, as a platform, to be owned by
an American company or owned by China? Do we want the data from
TikTok - children's data, adults' data - to be going, to be
staying here in America or going to China?"
The Chinese Foreign Ministry has criticized the legislation,
arguing "though the U.S. has never found any evidence of TikTok
posing a threat to the U.S.'s national security, it has never
stopped going after TikTok."
PROMINENT DEMOCRATS QUESTION BILL
A number of prominent Democrats in the House voted against
the bill including House Democratic Whip Kathleen Clark, Arizona
Senate candidate Ruben Gallego, Alexandria Ocasio-Cortez as well
as the top Democrats on the Judiciary, Ways and Means,
Transportation and Intelligence committees.
"There are serious antitrust and privacy questions here, and
any national security concerns should be laid out to the public
prior to a vote," Ocasio-Cortez said.
Senate Commerce Committee chair Maria Cantwell, who will
play an important role in the Senate's next move, said she wants
legislation "that could hold up in court," and is considering a
separate bill, but is not sure what her next step is.
The vote came just over a week after the bill was proposed
following one public hearing with little debate, and followed
action in Congress stalling for more than a year. Last month,
Biden's re-election campaign joined TikTok, raising hopes among
company officials that legislation was unlikely this year.
Several dozen TikTok users rallied outside the Capitol
before the vote. The company paid for their travel to Washington
and their accommodation, a TikTok spokesperson said.
The group included Mona Swain, 23, who said she had joined
TikTok in 2019, during her freshman year at college pursuing
musical theater. Now a full-time content creator, she said she
was paying her mother's mortgage and for her brother and
sister's college educations with her earnings from the app.
"It's gonna put a lot of people out of work, which is
the scariest part," Swain said of the bill.
UNCERTAINTY OVER SALE
It is unclear whether China would approve any sale or if
TikTok's U.S. assets could be divested in six months.
If ByteDance failed to do so, app stores operated by Apple ( AAPL )
, Alphabet's Google and others could not
legally offer TikTok or provide web hosting services to
ByteDance-controlled applications.
In 2020, then-President Donald Trump sought to ban TikTok
and Chinese-owned WeChat but was blocked by the courts. In
recent days he had raised concerns about a ban but nearly all
House Republicans shrugged those off.
It is unclear if Tencent's ( TCTZF ) WeChat or other
high-profile Chinese-owned apps could face a ban under the
legislation.
Beyond the likely legal challenge from TikTok, the American
Civil Liberties Union and other advocacy groups are arguing the
bill is unconstitutional on free speech and other grounds.
In November, a U.S. judge blocked a Montana state ban on
TikTok use after the company sued.