Biden Reverses Trump's TikTok and WeChat Bans

Biden Administration Revises Approach to Chinese Tech Apps

President Joe Biden is lessening the regulatory ambiguity confronting Chinese technology firms operating within the United States, effectively modifying aspects of the previous administration’s policies. A recently signed executive order, as announced by the White House on Wednesday, rescinds prior actions taken against TikTok, WeChat, and other Chinese-based applications initiated under former President Donald Trump.

New Security Review Process

In place of the previous directives, President Biden has authorized a new order mandating the Commerce Department to conduct thorough reviews of applications linked to nations considered “foreign adversaries.” This assessment will focus on identifying potential risks to national security.

The Biden administration’s order nullifies two earlier orders issued by President Trump. One, dating back to August, aimed to prohibit U.S. commercial transactions involving TikTok and WeChat. The second, announced in January, targeted a collection of eight Chinese services, including WeChat Pay, Tencent’s QQ messenger, and Ant Group’s Alipay.

Legal Challenges and Prior Attempts at Sale

It is important to note that the Trump administration’s attempts to ban TikTok and WeChat within the U.S. were previously halted by rulings in federal courts. Furthermore, efforts to compel the sale of TikTok’s U.S. operations were ultimately abandoned.

The continued “increased utilization within the United States of specific connected software applications” originating from entities owned or controlled by, or operating under the jurisdiction of, a foreign adversary – a category explicitly including China – “continues to present a threat to the national security, foreign policy, and economic interests of the United States.”

Shift in Regulatory Focus

While heightened scrutiny of Chinese technology companies is expected to persist as a priority for U.S. regulatory bodies, the approach under President Biden may become more systematic and deliberate. Consequently, Chinese companies seeking access to the U.S. market will need to demonstrate enhanced preparedness for data compliance requirements.

Comprehensive Data Protection Review

The order instructs the Secretary of Commerce, in collaboration with various other federal officials – including the Secretaries of State, Defense, Health and Human Services, and Homeland Security, as well as the Director of National Intelligence – to propose measures for safeguarding the data of American citizens on platforms owned or controlled by a “foreign adversary” within a 120-day timeframe.

Although American technology giants like Facebook and Google also amass substantial user data, Anne Neuberger, the NSA’s Director of Cybersecurity, explained to TechCrunch during Disrupt 2020 that the “scope and scale” of data collection by TikTok facilitates the ability of Chinese intelligence agencies to obtain answers to a wide range of intelligence inquiries concerning U.S. citizens. She emphasized concerns regarding the potential for China to leverage this information against populations beyond its own borders.

Popularity of Chinese Apps in the U.S.

Numerous Chinese technology firms have developed highly successful applications within the U.S. market. TikTok, currently establishing Singapore as a key operational hub following the U.S. government’s attempted ban, currently ranks second among free apps on the U.S. App Store. CapCut, a video-editing application also owned by ByteDance, has experienced a recent surge in downloads within the U.S. Moreover, mobile games from Tencent and other Chinese studios continue to generate significant revenue in the country, while Shein, a fast-fashion shopping app, is demonstrating growth rates exceeding those of Amazon.

Representatives from the U.S. Department of Commerce, Tencent, and ByteDance were unavailable for immediate comment.

This story has been updated to include further details regarding the revocation.