| TikTok has dismissed reports that the Biden administration has demanded its Chinese owners, ByteDance, to sell their stakes in the app on national security grounds or face a ban in the US. A TikTok spokesperson stated that divestment would not solve the problem of protecting national security and that the best way to address concerns is with transparent, US-based protection of user data and systems. Analysts see a low probability of any formal TikTok ban in the US through 2024. The prospect of a ban appeared to be helping social media stocks like Snap and Facebook, whose shares increased in premarket trading. |
Complex Terms:
- TikTok – A social media app that allows users to create and share short videos set to music or other audio tracks
- ByteDance – A Chinese multinational internet technology company that owns TikTok and other popular apps such as Douyin, Toutiao, and Xigua Video
- Divestment – The action of selling or disposing of assets, investments, or subsidiaries
- Premarket trading – Trading activity that occurs before regular trading hours begin
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