BEIJING (AP) \u2014\u00a0U.S. lawmakers have grilled\u00a0TikTok CEO\u00a0Shou Zi Chew\u00a0about data security and harmful content, with some pushing to ban the popular short-video app nationwide.<\/p>\n\n\n\n
Chew, a native of Singapore, told the lawmakers that TikTok prioritizes user safety as he sought to avert a U.S. ban on the app by downplaying its ties to China.<\/p>\n\n\n\n
Both Republican and Democratic representatives aggressively questioned Chew on topics including TikTok\u2019s content moderation practices, its data security plans, and past spying on journalists.<\/p>\n\n\n\n
Here\u2019s a look at some of the concerns about TikTok and its ownership.<\/p>\n\n\n\n
TikTok, which has over 150 million American users, is a wholly owned subsidiary of Chinese technology firm ByteDance Ltd., which appoints its executives.<\/p>\n\n\n\n
ByteDance is based in Beijing but registered in the Cayman Islands, as is common for privately owned Chinese companies. Its headquarters is in Beijing\u2019s northwestern Haidian district, home to key universities and a hub for tech startups. TikTok has dual headquarters in Singapore and Los Angeles.<\/p>\n\n\n\n
Founded by Chinese entrepreneur Zhang Yiming in 2012, ByteDance is said to be valued at around $220 billion \u2014 nearly half of its 2021 valuation of $400 billion. Publicly traded Chinese tech companies and privately held ones like ByteDance have plunged in value since the ruling Communist Party tightened control over the industry with anti-monopoly and data security crackdowns.<\/p>\n\n\n\n
Western governments worry\u00a0Chinese authorities could force ByteDance to hand over TikTok data on American users, exposing sensitive information. Foreign Ministry spokeswoman Mao Ning said Friday that China\u2019s government has never and will not ask companies to \u201ccollect or provide data, information or intelligence\u201d held in foreign countries, adding the U.S. \u201chas not provided any evidence so far to prove that TikTok threatens U.S. national security.\u201d<\/p>\n\n\n\n
ByteDance says 60% of its shares are owned by non-Chinese investors such as U.S investment firms Carlyle Group and Kohlberg Kravis Roberts and Japan\u2019s SoftBank Group. Employees own 20% and its founders the remaining 20%.<\/p>\n\n\n\n
Some details of the relationship between TikTok and ByteDance remain unclear to outsiders.<\/p>\n\n\n\n
China\u2019s 2017 National Intelligence Law states that \u201cany organization\u201d must assist or cooperate with state intelligence work while a separate 2014 Counter-Espionage Law says \u201crelevant organizations … may not refuse\u201d to collect evidence for an investigation.<\/p>\n\n\n\n
Since ByteDance, which owns TikTok, is a Chinese company, it would likely have to abide by these rules if Chinese authorities asked it to turn over data.<\/p>\n\n\n\n
Laws and regulations are only one aspect of the Communist Party\u2019s pervasive control. There are no legal limits on the party\u2019s powers. The authorities also can threaten to cancel licenses, conduct regulatory or tax investigations and use other penalties to compel compliance by Chinese and foreign companies operating in China.<\/p>\n\n\n\n
The party sometimes conveys orders using \u201cwindow guidance,\u201d or informal communication in private. It has used crackdowns to tighten control over technology companies and force them to align with its goals.<\/p>\n\n\n\n
The Chinese government has also sought more direct control over companies by getting seats on boards of directors.<\/p>\n\n\n\n