Some have speculated that US president-elect Donald Trump may want to try and step in to ensure TikTok's future in the US despite concerns he stressed during his first term. AP
Some have speculated that US president-elect Donald Trump may want to try and step in to ensure TikTok's future in the US despite concerns he stressed during his first term. AP
Some have speculated that US president-elect Donald Trump may want to try and step in to ensure TikTok's future in the US despite concerns he stressed during his first term. AP
Some have speculated that US president-elect Donald Trump may want to try and step in to ensure TikTok's future in the US despite concerns he stressed during his first term. AP

Does Donald Trump want to ban TikTok?


Cody Combs
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As ByteDance awaits a decision from a US federal appeals court that may determine TikTok's future in the country, some users believe president-elect Donald Trump may try to assist with the platform's survival.

"For all those who want to save TikTok in America, vote Trump," he said in a post on his Truth Social platform on September 4.

In a video that lasted less than one minute, he said he was "now a big star on TikTok" and added that "we're setting records", referring to his 14.5 million followers on the platform.

TikTok has more than one billion monthly active users around the world and at least 170 million active users in the US, according to most reports, and the video sharing platform and its algorithm are the envy of many in the technology and media sectors. Yet its success has come under tremendous scrutiny, especially in the US, where concerns have mounted over TikTok's parent company, Beijing-based ByteDance, and whether the company and its trove of user data could be used by the Chinese government.

Some local jurisdictions in the US have banned the app on government devices, while the US federal government has taken similar moves over what it said were national security concerns.

Despite TikTok's repeated insistence that user data was not being compromised, US Congress continued to increase pressure on the platform, resulting in a bill that seeks to force ByteDance to divest from TikTok to a US owner. The law passed with bipartisan support and was signed by US President Joe Biden in April.

In response, TikTok sued the US government, claiming its First Amendment rights had been breached. During his first term in the White House, Mr Trump also expressed concern about the potential misuse of the app's data by Chinese authorities.

Those concerns were often couched under the overall rhetoric from the Trump administration, which centred on tariff threats against China. But as Mr Trump's popularity on TikTok grew, he seems to have changed his mind, even seeming to accuse Democrats of driving efforts to force ByteDance to divest, despite the bill passing with Republican support.

"We're not going to do anything with TikTok, but the other side is going to close it up," he said.

The campaigns of Vice President Kamala Harris and Mr Biden had a presence on TikTok during the presidential election, as well after the bill was passed. If ByteDance has not sold its stake in TikTok by January 19, the app will probably be phased out of app stores operating in the US. Stored could faces penalties of up $5,000 for every time the app is distributed after a ban comes into effect, according to legislation passed by Congress.

If ByteDance does not sell TikTok by a January 19 deadline set by US lawmakers, potential monetary penalties could force distributors to remove the app from availability within the US.
If ByteDance does not sell TikTok by a January 19 deadline set by US lawmakers, potential monetary penalties could force distributors to remove the app from availability within the US.

ByteDance has indicated repeatedly that it is not willing to divest TikTok from its portfolio, setting up a potential showdown with the US government as the divestment deadline approaches.

Meanwhile, TikTok's legal challenge to the constitutionality of the bill seemed to face sceptical judges in a US appeals court in September. Some of the judges pointed to the 1987 case, Palestine Information Office v Shultz, as a precedent for allowing legislators to try to curtail TikTok's influence in the US.

A decision from the circuit court is likely to be announced before December 6, though that is not guaranteed. It is likely that if TikTok is unsuccessful, ByteDance could appeal to the US Supreme Court.

As for Mr Trump, it is not clear what he could do to prevent the law from forcing a sale, even after he is sworn into office on January 20. On paper, at least, he could encourage the House of Representatives and the Senate to repeal the law. Given Republicans will soon control both chambers, that is a plausible scenario.

Mark MacCarthy, a senior fellow at the Institute for Technology Law and Policy at Georgetown Law in Washington, said that, while the legislation might not be popular in the court of public opinion, it might still persevere through the courts.

TikTok chief executive Shou Zi Chew has said user data on the platform ash not been compromised. AFP
TikTok chief executive Shou Zi Chew has said user data on the platform ash not been compromised. AFP

"I think the ban is a terrible idea, but I would agree that it is not unconstitutional," he said, critiquing the arguments made in court by TikTok lawyer Andrew Pincus.

Mr MacCarthy said that, although he is personally concerned that the law is rooted in confrontational US policy towards China, which could escalate, that is not the decision the circuit court will make. There is plenty of precedent for national security concerns to override the free speech arguments made by TikTok's lawyers, he added.

Since TikTok announced its lawsuit against the government, the platform's chief executive, Shou Zi Chew, has been largely silent, although he did address users briefly shortly after the legislation passed in April.

“Make no mistake, this is a ban, a ban on you and your voice," Mr Chew said in a video posted on the platform. “Politicians may say otherwise, but don’t get confused. Many who signed the bill say the TikTok ban is the ultimate goal.”

TikTok has not yet responded to requests for comment on this story and neither has the Trump presidential transition team.

UAE squad

Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.

UAE tour of Zimbabwe

All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

What is Genes in Space?

Genes in Space is an annual competition first launched by the UAE Space Agency, The National and Boeing in 2015.

It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration. 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: December 13, 2024, 12:05 PM