TikTok CEO criticized by Democrats and Republicans at hearing, as bill that could ban app picks up more supporters

By Victor Reklaitis

House committee's chairwoman says: 'TikTok is a weapon by the Chinese Communist Party to spy on you, manipulate what you see and exploit future generations'

Democrats and Republicans on a U.S. House committee were united on Thursday in expressing skepticism about TikTok's defense of its popular video-sharing app as they grilled its CEO, Shou Zi Chew.

"To the American people watching today, hear that TikTok is a weapon by the Chinese Communist Party to spy on you, manipulate what you see and exploit future generations," said Rep. Cathy McMorris Rodgers, the Republican from Washington state who chairs the House Energy and Commerce Committee.

During a hearing that featured Chew, she also told the CEO: "Your platform should be banned."

Concerns that data from TikTok's 150 million American users could be shared with the Chinese government are driving bills in Congress that could end up banning the app, which is owned by Beijing-based ByteDance. So Chew tackled that issue directly during the hearing.

"The bottom line is this: American data stored on American soil by an American company overseen by American personnel," he told lawmakers, referring to an effort to protect U.S. data that TikTok has dubbed "Project Texas."

But lawmakers from either side of the aisle didn't sound like they were won over by TikTok's CEO, a native of Singapore who had noted in his opening remarks that his wife had been born in Virginia.

"I don't find what you suggested with Project Texas, and this firewall that's being suggested to whoever, will be acceptable to me," said Rep. Frank Pallone of New Jersey, the top Democrat on the House committee.

Follow MarketWatch's live updates:TikTok's CEO faces grilling from Congress

Other members of the committee made note of how both parties seemed on the same page.

"It might sound a little funny, but you have in fact been one of the few people to unite this committee," Democratic Rep. Tony Cardenas of California said when he had his turn to question Chew.

Democrats and Republicans are "in agreement that we are frustrated with TikTok, we're upset with TikTok," Cardenas said.

When Republican Rep. Michael Burgess of Texas questioned Chew during the hearing, the congressman highlighted reports that China has said it would oppose any forced sale of TikTok.

"Despite your assertions to the contrary, China certainly thinks it is in control of Tik Tok and its software. Is that not correct?" Burgess asked.

Chew responded by saying Tik Tok is not available within mainland China, and he said his company makes use of Chinese employees. But the CEO didn't offer a yes or no in response to the Texas lawmaker's question.

The Biden administration reportedly has told TikTok's Chinese owners to sell their stakes in the popular video-sharing app or face a ban in the U.S.

The Biden administration also has said it supports legislation from Democratic Sen. Mark Warner of Virginia and Republican Sen. John Thune of South Dakota that could result in a ban.

Warner on Wednesday said that their bill, the Restrict Act, now has a total of 20 co-sponsors in the Senate, up from 12 when it was introduced earlier this month.

Virginia's senior senator also discounted Chew's testimony before it had even been delivered, saying in a statement that TikTok's "lack of transparency, repeated obfuscations, and misstatements of fact have severely undermined the credibility of any statements by TikTok employees, including Mr. Chew."

-Victor Reklaitis

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03-23-23 1238ET

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