China’s influence on digital platforms and social media within the United States has become a significant concern for U.S. policymakers. This influence, predominantly exercised through PRC-affiliated platforms such as TikTok, has led to increased scrutiny and legislative actions aimed at safeguarding national security. The widespread reach and substantial user base of these platforms, combined with their connections to the Chinese government, have raised alarms about the potential manipulation of public opinion and the implications for U.S. data security.
TikTok, owned by ByteDance, exemplifies these concerns. With approximately 148.9 million users in the U.S. as of January 2024, TikTok’s ties to China are particularly troubling. ByteDance’s retention of U.S. user data in China for at least seven years was a key issue highlighted during the CEO’s congressional testimony in March 2023. In response to these concerns, Congress enacted P.L. 118-50 in April 2024, which mandates ByteDance to divest TikTok and empowers the President to regulate other PRC-controlled digital platforms. This legislation also prohibits the transfer of U.S. personally identifiable sensitive data to foreign adversaries, including China.
The asymmetric market access between the U.S. and China further complicates the issue. While PRC digital firms, supported by government policies, have successfully penetrated the U.S. market, American firms face significant restrictions in China. This disparity not only raises questions of fair competition and market reciprocity but also highlights the need for stringent U.S. regulations on PRC digital firms operating domestically. Over the past decade, PRC digital platforms have expanded significantly in the U.S., infiltrating various regulated sectors such as broadcasting, media, health, and finance through mobile applications.
China’s digital platform development strategy is deeply intertwined with its national policies. The Chinese government has actively promoted the growth of its digital platforms by restricting foreign competitors and nurturing domestic alternatives. Major Chinese firms like Alibaba, Baidu, and Tencent have grown to compete globally by leveraging these supportive policies. ByteDance’s acquisition of musical.ly in 2017, which provided a substantial U.S. user base, is a notable example of how PRC firms have rapidly established themselves in foreign markets. The integration of these platforms with PRC government interests is facilitated through laws such as the National Security Law (2015), Cybersecurity Law (2017), and Data Security Law (2021), which impose strict data localization and security requirements on both domestic and international operations.
The Communist Party of China’s (CPC) influence over these digital platforms is extensive, with party committees embedded within firms to participate in decision-making processes. This influence extends to controlling the export of algorithms used in social media, thereby impacting the operations of platforms like TikTok overseas. The PRC’s legal framework mandates that companies adhere to Chinese regulations even when these conflict with foreign laws, further complicating the independence of PRC firms operating abroad.
U.S. responses to these challenges have included a series of executive orders and legislative actions aimed at curbing the influence of PRC digital platforms. For instance, Executive Order 13873, renewed annually since 2019, declared a national emergency to secure the U.S. information and communications technology supply chains. Various presidential orders have required divestitures and imposed restrictions on the operations of PRC firms like ByteDance and Tencent. Despite legal challenges and court injunctions, these measures reflect the growing bipartisan consensus on the need to address the national security risks posed by PRC-controlled digital platforms.
The recent P.L. 118-50, which designates TikTok as a “foreign adversary-controlled application,” represents a significant step in this direction. The legislation allows for a “qualified divestiture” of TikTok, aiming to mitigate national security risks while providing a pathway for the platform to continue operating under new ownership. This approach underscores the complexity of balancing security concerns with market realities.
As Congress continues to address these issues, the focus remains on safeguarding U.S. data and ensuring fair competition. The extensive control exercised by the PRC over its digital platforms necessitates robust oversight and regulatory frameworks to protect U.S. interests. The evolving landscape of digital platforms and their global influence underscores the importance of vigilance and proactive policy measures in countering foreign influence operations.
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