US expects TikTok to operate as local company, leave ByteDance

Washington: A top White House adviser on Thursday said he expects TikTok to separate from its Chinese owner and operate as an US company, amid growing concerns about the security of the data handled by the short video app. White House economic adviser Larry Kudlow told reporters a move by TikTok to leave Beijing ByteDance Technology, would be a better option than a ban on the app, which was threatened by State Department Secretary Mike Pompeo earlier this month.

“We haven’t made final decisions but… I think TikTok is going to pull out of the holding company which is China-run and operate as an independent American company,” Kudlow said. He did not specify whether TikTok’s ownership would change under the proposed structure. He declined to comment when asked if US companies could acquire TikTok. When asked about Kudlow’s remarks, a TikTok spokesman said the company would not “engage with speculation in the market,” and referred to a statement last week noting that ByteDance was “evaluating changes to the corporate structure of its TikTok business” and fully committed to protecting users privacy and security.