The End of TikTok: Is the US Turning Its Back on Chinese Tech?

Thursday - May 2 2024, 05:31 UTC - 6 months ago

In 2024, the US has passed a bill targeting TikTok, sparking reflection on the changing perception of Chinese tech companies and their relationship with the US. Despite challenges and political tensions, TikTok's success has served as inspiration for other Chinese startups, and the future of Chinese companies in the US remains uncertain. In other news, Taiwanese chip manufacturer TSMC faces cultural and professional challenges in its American expansion, and the US and China may see potential changes in their relationship following a meeting between leaders.

In 2020, the US found itself embroiled in tensions with China, resulting in President Donald Trump considering a ban on popular Chinese-owned social media app TikTok. While the ban was eventually blocked, the idea of banning or limiting the app never fully went away. Fast forward to 2024, and the US government has passed a divest-or-ban bill specifically targeting TikTok.

A lot has changed in the four years between these two news cycles. What was once a rising sensation, misunderstood by many, is now one of the biggest social media platforms, responsible for defining a new generation of content and a major player in the music industry. However, despite TikTok's immense popularity, concerns over its ties to the Chinese government, unpredictable algorithms, and data privacy have never fully subsided.

While Chinese tech giants like Alibaba, Tencent, and Baidu primarily operate within China's borders, TikTok was the first to see mass popularity outside of its home country. This success has served as inspiration for many Chinese startups, showing that hard work and understanding of foreign markets can pay off in the long run. However, with the pressure and scrutiny faced by TikTok, smaller players may begin to question their own chances of success in the US market.

Additionally, the uncertainty around TikTok's fate in the US has forced Chinese companies to confront their associations with China and how it affects their image and relationships with users and regulators. Attempts to distance themselves from their Chinese roots may ultimately backfire and damage their reputation even further.

This ongoing tension between the US and China has also affected the media landscape, as Chinese companies may feel unwelcome in the US and thus be less willing to engage with international media. This lack of communication makes it harder for people outside of China to understand the inner workings of the country's tech industry.

Here are six extra facts to catch up on with China this week: .

1. Facing the possibility of a total ban on TikTok, influencers and creators are making contingency plans, highlighting the potential impact on content creators and businesses. (Wired $) .

2. Taiwanese chip manufacturer TSMC faces cultural and professional challenges in its efforts to build a new factory in Arizona. (Rest of World) .

3. The meeting between US secretary of state Antony Blinken and Chinese president Xi Jinping this week signals potential changes in the tense relationship between the two countries. (New York Times $) .

4. A little-known offshore payment service, middleme-Alibaba, has earned $2 billion in fees from the Russian market, indicating that US and EU sanctions have not significantly diminished business between Russia and China. (Euromoney) .

5. In a unique display of wealth and marketing, landlords in China are asking tenants to post their high rent prices on Douyin (Chinese TikTok). (Sixth Tone) .

6. The US Department of Labor has accused Apple supplier Broadcom of widespread labor violations in both the US and Singapore. This follows similar accusations against other major US tech companies. (Bloomberg) .