ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

House of Representatives likely to pass TikTok ban: What happens next?

House lawmakers are set to vote on a bill that would require China-based ByteDance to divest TikTok or it would be banned, though it faces an uncertain fate in the Senate.

The House of Representatives is expected to hold a vote Wednesday morning on the bill that would require TikTok to be divested from its China-based parent company ByteDance or face a ban over national security concerns.

The Protecting Americans from Foreign Adversary Controlled Applications Act was introduced last week by Reps. Mike Gallagher, R-Wis., and Raja Krishnamoorthi, D-Ill., who are the bipartisan leaders of the Select Committee on the Strategic Competition between the U.S. and the Chinese Communist Party (CCP). The bill seeks to block apps controlled by foreign adversaries like China, Russia, Iran and North Korea.

If enacted, the bill would give ByteDance six months to sell TikTok to an entity outside of China, and if it fails to do so, U.S. companies that operate app stores like Google and Apple or host websites would be required to ban TikTok. The app has raised concerns about its potential to serve as a propaganda and surveillance tool due to ByteDance's CCP links, as well as concerns about its algorithm surfacing harmful content to young users.

Last week, the House Energy and Commerce Committee advanced the bill on a unanimous 50-0 vote, and it is likely to pass the full House on a bipartisan vote. President Biden also indicated he would sign the bill into law if it reaches its desk – though it faces an uncertain fate in the Senate.

DEFYING TRUMP, HOUSE GOP PLANS TO FORGE AHEAD WITH TIKTOK BILL THAT COULD BAN APP

Senate Majority Leader Chuck Schumer, D-N.Y., has not indicated his plans for bringing the House's TikTok bill up for a vote and said he would wait to see what the House does and that he would speak with committee leaders about the bill. 

Schumer's office did not immediately respond to a request for comment.

Senate Commerce Committee Chair Maria Cantwell, D-Wash., has indicated she prefers a different bill known as the GUARD Act that would give the Commerce Department authority to regulate foreign-owned apps like TikTok without banning them entirely.

TIKTOK FACES BAN IN BIPARTISAN BILL IF BYTEDANCE DOESN'T DIVEST OWNERSHIP

It remains uncertain whether the Senate will consider the legislation. Senators on both sides of the aisle have continued to weigh in on the threat of TikTok even as some senators oppose the House bill.

"China is our chief adversary, and the CCP is ruthless," Sen. Eric Schmitt, R-Mo., told FOX Business in a statement. "Their ownership of this AI weapon aimed at America and our kids needs to be addressed. It's a serious national security issue."

Sen. Mark Warner, D-Va., said during a committee hearing on Monday that, "Donald Trump was right years ago when he pointed out the enormous national security concerns around TikTok, both in terms of obtaining data, but also think about the percentage – I think there are about 170 million Americans who use TikTok."

TRUMP SAYS TIKTOK A NATIONAL SECURITY THREAT BUT YOUNG PEOPLE WILL 'GO CRAZY' WITHOUT IT

If the House bill passes and the Senate takes action on an amended version of the bill or different legislation altogether, the two chambers will need to agree on a version of the bill that can be passed by both and sent to President Biden's desk to get signed into law. 

FCC COMMISSIONER SAYS TIKTOK IS A 'CLEAR AND PRESENT DANGER' TO US NATIONAL SECURITY

Officials from the FBI, Justice Department, and the Office of the Director of National Intelligence (ODNI) briefed House lawmakers about TikTok on Tuesday. 

The briefing comes a day after ODNI, which oversees U.S. intelligence agencies, released its annual worldwide threat assessment which noted that China has used tools like TikTok for foreign influence operations.

"China is demonstrating a higher degree of sophistication in its influence activity, including experimenting with generative AI. TikTok accounts run by a PRC propaganda arm reportedly targeted candidates from both political parties during the U.S. midterm cycle in 2022," ODNI wrote.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

TikTok has said the House bill is "an outright ban of TikTok, no matter how much the authors try to disguise it." The company added that it would "trample the First Amendment rights" of its 170 million U.S.-based users.

The platform sent notifications to its U.S. users, including children, who deluged congressional offices with phone calls and correspondence to lobby against the bill after it was introduced last week. Despite those efforts, the bill advanced unanimously out of committee and Republican leaders in the House said it would receive a floor vote this week.

Fox News' Elizabeth Elkind contributed to this report.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.