---
title: "TikTok considers separating from byte-dance if the U.S. plan fails"  
description: "Bloomberg claims that the business may divest and sell or IPO if the US national security accord is refused."  
author: "Anonymous User"  
published: 2023-03-21  
canonical: https://www.mindstick.com/news/2905/tiktok-considers-separating-from-byte-dance-if-the-u-s-plan-fails  
category: "news"  
tags: ["news", "tiktok", "tiktok followers"]  
reading_time: 2 minutes  

---

# TikTok considers separating from byte-dance if the U.S. plan fails

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People who know about the situation told Bloomberg on Monday that China's [**TikTok**](https://www.mindstick.com/news/2901/after-tiktok-was-banned-on-government-owned-smartphones-in-india-new-zealand-and-other-nations) is thinking about splitting from its parent company, ByteDance, to help ease US concerns about [threats to national](https://answers.mindstick.com/qa/112006/how-are-governments-addressing-cybersecurity-threats-to-national-security) security.

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![TikTok considers separating from byte-dance if the U.S. plan fails](https://lh4.googleusercontent.com/6NGvbWrGiLkuRHkpTRSXvIcskvzZGskES2CAGYmN9ZPpP1cHXyl0wcEZyTBLAIzdWDG4GSDn3jHVlhklS0mM-9pfXj_rkyKO9j4Se03CGR2YrhCiGEFdn1myOsEQhqR2YE2IxfRHedYcip05wrR_Gg8)

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The report said that a divestiture, which could lead to a sale or an IPO, is a last resort that will only be used if the company's current proposal with US [national security](https://answers.mindstick.com/qa/106107/how-does-the-national-security-council-function) officials is not approved.

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[**Also Read: TikTok CEO Seeks to Reassure on EU Rules on Privacy, Child Safety**](https://www.mindstick.com/news/2685/tiktok-ceo-seeks-to-reassure-on-eu-rules-on-privacy-child-safety)

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TikTok and ByteDance didn't respond [right away](https://yourviews.mindstick.com/view/87928/help-your-children-avoid-internet-scams-right-away) when Reuters asked them for comments.

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The Committee on Foreign Investment in the [United States](https://www.mindstick.com/news/2228/the-united-states-claims-seagate-broke-export-laws-by-selling-huawei-hard-drives) (CFIUS) is conducting a national security evaluation of the short-form video app, and it agreed to apply certain restrictions under the "Project Texas" plan last year in an effort to appease sceptical senators.

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According to the article, CFIUS's procedure has halted, leaving TikTok unclear of whether its preparations would be adequate to continue operating in the nation.

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It further stated that Justice Department CFIUS members had refused to accept TikTok's proposal.

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TikTok, which is used by more than 100 million Americans, has drawn increased attention due to concerns that Chinese officials may gain [user data](https://www.mindstick.com/forum/160424/how-do-bearer-tokens-ensure-the-security-and-confidentiality-of-user-data) and jeopardise Western security interests. The CEO of TikTok, Shou Zi Chew, will appear before the [US Congress](https://yourviews.mindstick.com/view/81372/us-congress-should-go-in-remote-mode-for-proper-functioning) the following week.

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Because of concerns that user data may be given to China's government, CFIUS, a significant national security committee, has unanimously proposed in 2020 that ByteDance sell itself of TikTok.

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Data [security measures](https://www.mindstick.com/news/2963/lawmaker-urges-ai-companies-microsoft-alphabet-openai-to-prioritize-security-measures) have been under discussion between TikTok and CFIUS for more than two years. According to TikTok, it has invested more than $1.5 billion in strict [data protection](https://www.mindstick.com/blog/303929/what-is-data-protection-and-why-is-it-important) measures and denies claims of espionage.

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---

Original Source: https://www.mindstick.com/news/2905/tiktok-considers-separating-from-byte-dance-if-the-u-s-plan-fails

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