TikTok's Looming Sale Promises Global Tech Divide

TikTok, owned by the Chinese company ByteDance, is currently facing a critical moment in its existence. The U.S. government is mandating its sale to avoid a nationwide ban. With 170 million users in the U.S. alone, the outcome of this situation could have significant implications for TikTok's market presence and for China's broader technological 

The U.S. Congress has passed a bill that requires ByteDance to either divest TikTok or stop its operations. President Joe Biden is expected to sign this measure into law. The decision not only threatens ByteDance'sexpansion but also foreshadows a possible escalation of the technological rivalry between the United States and China. 

In response, Beijing has adjusted its export controls to potentially block the sale on national security grounds. The main concern is the proprietary algorithm that forms the basis of TikTok's success. 

The proposed sale of this algorithm has been met with criticism, as it may cause a significant decline in TikTok's operational effectiveness. This would certainly benefit its competitors such as YouTube and Instagram, who could gain from TikTok's weakened state or exit from the market. 

This issue is part of a broader context in which the United States and China are increasingly diverging in their technological domains. This could lead to a split in the global tech landscape, affecting control over data centers, internet satellites, undersea cables, and semiconductors.

If TikTok is banned, it may accelerate Beijing's efforts to expand its digital influence in developing regions such as Southeast Asia. This would be an attempt to counterbalance the US's technological influence.