The US House of Representatives passed a bill over the weekend aimed at forcing TikTok’s parent company ByteDance to divest from the company. President Biden has previously claimed that if the bill makes it to his desk, he would sign it into law. China has recently forced Apple (AAPL) to remove several popular messaging apps, including Meta’s (META) WhatsApp, from its app store in China.
Macrolens Chief Strategist Brian McCarthy joins Market Domination to give insight into China’s reception of the bill to ban TikTok from the US and how it will affect US/China relations.
In terms of the connection between China and ByteDance, and why China would not allow divestiture from ByteDance, McCarthy affirms: "The fact that there is no connection is their story and they’re sticking to it come hell or high water. And I think, while ByteDance is probably worth anywhere between $250 billion to $300 billion, there is a fair amount of capital at risk here. Now, the company wouldn’t cease to exist if it gets booted from the US market, but obviously, there’s going to be tens of billions, if not triple-digit billions, lost, much of it on the part of Chinese investors. But that’s really small change compared to what China is fighting for which is its unfettered access to our market. This is just one of a number of fronts in what is an increasingly, sort of, heated debate about China’s involvement in global marketplaces. "
#youtube #tiktok #china
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