The chair of the House Select Committee on China on Thursday expressed reservations about the proposed structure of the sale of TikTok’s US operations, indicating that a licensing agreement for the app’s core algorithm would raise “serious concerns.”
Speaking at a forum, representative John Moolenaar voiced concerns over any arrangement that would allow TikTok’s Chinese parent company, ByteDance, to retain influence over the powerful recommendation engine used by the social media app.
TikTok’s US operations became a bone of contention between the US and China after the US expressed security concerns and asked the Chinese-owned short-video app to find other owners or risk closure, despite being used by 170 million Americans.
Moolenaar has ignited further scrutiny of the TikTok deal
According to Reuters, Moolenaar, a Republican, is waiting for a briefing to get more details on the deal that White House officials said previously would include the new owners of TikTok’s US assets licensing the algorithm.
“I think anytime you have (China) with leverage over the algorithm, I think that’s a problem.”
Moolenaar.
His comments have invited more scrutiny of the deal that got its preliminary green light from the White House. President Donald Trump subsequently signed an executive order declaring that a plan to sell the short video app’s US assets to a consortium of US and global investors meet national security requirements set out in a 2024 law.
The order also gave the parties 120 days to conclude the transaction. Under the terms and conditions that White House officials previously outlined, the new US-based entity would license the algorithm from the Chinese firm ByteDance, but Moolenaar quizzed the feasibility of securing the existing code.
“I just believe you have to have a new algorithm, and I don’t know that you can reprogram,” Moolenaar added, pointing to technology experts saying that it is unclear precisely what is in the algorithm. “I would say it’s still very much a work in progress.”
The new TikTok board is expected to comply with US laws
The structure of the deal is supposed to comply with a 2024 law that compels ByteDance to sell its US assets by January this year or face a ban. President Trump recently delayed enforcing that law until January 20.
The proposed agreement requires ByteDance to have less than 20% in the new entity that will be known as TikTok US. ByteDance will appoint one of the seven board members, while the other six will be held by Americans to guarantee that US interests run the platform.
This board will moderate content, update the tech, and ensure compliance with US laws.
As previously reported by Cryptopolitan, the agreement introduces major American business leaders and firms, among them Oracle, Michael Dell of Dell Technologies, as well as members of the Murdoch family who own media companies like News Corp and Fox. These members are expected to oversee the platform and make sure it operates according to US rules.
According to Reuters, President Trump’s order also says that the algorithm will be retained and monitored by the US company’s security partners, and the operation of the algorithm will be under the control of the new joint venture.
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