US demands TikTok’s Chinese owners sell stakes or face ban

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US demands TikTok’s Chinese owners sell stakes or face ban
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The US has told TikTok’s owners in China to sell their shares or risk a ban of the popular video-sharing app. Moneyweb TikTok

The US has told TikTok’s owners in China to sell their shares or risk a ban of the popular video-sharing app, people familiar with the matter said. The Treasury Department’s Committee on Foreign Investment in the US made the demand recently to TikTok’s owner, ByteDance, the people said, indicating that the Biden administration has given up on a security review that was intended to blunt potential Chinese influence regarding the app.

It administration’s stance would likely face renewed legal challenges — just as a similar attempted ban did under Trump. His Treasury secretary, Steven Mnuchin, oversaw an agreement under which ByteDance would sell its American assets to the Oracle-led group, but the sale was delayed after the Chinese company scored a series of legal victories. Early on, the Biden administration asked a federal judge to pause a lawsuit over that ban while it reviewed its options.

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