CALIFORNIA — Over the last several months, the popular social media app TikTok has taken over feeds across America. Now — as data privacy concerns mount, the social media via app is facing scrutiny over its ties to China, and on Thursday, President Trump made good on his threat to ban TikTok, issuing an executive order that will block the app’s parent company, ByteDance, from making business transactions with other American companies beginning in 45 days.
A separate order bans business transactions involving WeChat a communications and commerce too owned by Chinese internet giant Tencent. The orders come after the Trump administration considered apps from Chinese software companies national security threats, warning that they could put American’s privacy in danger.
TikTok has said it hasn’t and won’t give information to the Chinese government. The company said its U.S. user information is stored in the U.S and backed up in Singapore, and that it will open a transparency and accountability center in Culver City this year. That will allow experts to view its content moderation policies and see the code that powers its algorithm.
“Some of the issues that are being brought up about TikTok, its privacy policy, its constant moderation…these are questions that have been raised against other social media companies here in the U.S,” said LA Times staff writer Wendy Lee. “I think TikTok is seen as the most popular app to come from a China-based company, and trying to reach a more global audience in the U.S., and so some people see the backlash against TikTok as part of this larger China Trade War."
In the U.S. TikTok has 1,500 employees and plans to add 10,000 more in the next three years. The company has a big presence in Southern California. TikTok estimates that there are more than 65 career TikTok creators and nearly a dozen influencer houses launched in the area because of the app.
The “Vault House” in West Hollywood houses 12 TikTok influencers. The Vault is a modern, seven-bedroom home with more than 5,000 square feet of living space. There’s a rooftop deck, a pool, and an interior courtyard with fake grass where influencers hang out and make music.
Some of these young creators can make $20,000 and $30,000 a month through brand deals and promotions on TikTok. But with TikTok’s future at risk, these influencers are uncertain about their upcoming content.
“For some of them, they’re very concerned about it. They built these large audiences of millions of people that follow them on TikTok. If TikTok were to one day go away or be unavailable in the U.S., you know, what happens to their fan base?” Lee said.
Some of these creators have moved to different platforms like Triller or Instagram. Instagram launched a new short-form video feature called “Reels” this month. L.A.-based Triller was the second most downloaded mobile app in the U.S. on Saturday, according to San Francisco-based mobile research firm Sensor Tower.
Microsoft says it's exploring buying TikTok’s U.S., Australian, New Zealand, and Canadian operations and plans to bring all of its U.S. user data onto American soil. But, this type of deal would require government approval.
“I think the creators see Microsoft as a good thing and they’ll be happy that TikTok can still be around. And, while some of them are wondering what changes Microsoft will make, if Microsoft were to keep TikTok the same, then they’re cool with that,” Lee said.
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