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TikTok and the Dilemmas of US Digital Sovereignty

Writer: João PedroJoão Pedro

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The TikTok platform, owned by the Chinese technology company ByteDance, has become a global phenomenon, influencing digital culture, the creative economy, and communication dynamics. However, its rise has also triggered geopolitical concerns, especially in the United States, where the government has taken measures to restrict or ban the platform, citing national security risks. This text analyzes the U.S. government's stance on TikTok, exploring the implications for U.S.-China foreign policy, the motivations behind governmental actions, and the potential socioeconomic and cultural impacts of a possible ban.


TikTok has revolutionized digital culture by democratizing access to fame and creating an ecosystem of content creators and businesses. With nearly five billion global downloads and $15 billion in revenue in the U.S. alone in 2023, the platform has solidified itself as a pillar of the creative economy. However, its success has also placed it at the center of debates on digital sovereignty and data security. The U.S. government, with bipartisan support, argues that TikTok poses a national security threat due to the potential for data collection by the Chinese Communist Party and the platform's use for propaganda. These concerns reflect the growing technological and geopolitical rivalry between the U.S. and China.


Legislation signed by former President Joe Biden required TikTok to be sold to an American company or face a ban. However, Donald Trump's election in 2024 introduced new variables to the scenario (TOCZAUER, 2024). Trump, who previously saw TikTok as a threat, now appears more inclined to support its continued operation, possibly for political or economic reasons. His executive order to create a sovereign fund that could acquire TikTok suggests a pragmatic approach, aiming to avoid the ban while maintaining control over the platform (HOOKER, 2025). This measure, however, raises questions about government interference in the market and the precedents it sets for managing foreign companies.


The TikTok case symbolizes the complex relationship between technological innovation and national security in an increasingly interconnected world. A ban on TikTok could trigger Chinese retaliation against American companies, exacerbating bilateral tensions. Furthermore, the attempt to control a global platform like TikTok reflects the broader struggle for influence in the digital arena, where China has been advancing with its own technologies and standards. U.S. policy on TikTok, therefore, is not limited to security concerns but also involves competition for technological and cultural hegemony. A ban would leave a significant void in the digital ecosystem, with alternatives like Instagram Reels and YouTube Shorts unable to replicate the same level of engagement and community. Additionally, TikTok has fostered an inclusive and intergenerational space, encouraging cultural exchange and greater mutual understanding. Its potential removal could limit these connections and negatively impact the creative economy, valued at $250 billion in the U.S.


Although national security concerns are legitimate, the TikTok case also reveals the challenges of regulating global platforms that operate beyond traditional control. The decentralization of information on TikTok contrasts with traditional media, which may explain part of the political resistance to the platform. However, any regulatory measure must balance data protection with the preservation of innovation and freedom of expression.


Analysis of Future Scenarios


  1. Scenario 1: TikTok Ban

A complete ban on TikTok in the U.S. would have both immediate and long-term impacts. In the short term, content creators and small businesses would face significant financial losses, while users would migrate to alternative platforms such as Instagram Reels and YouTube Shorts. In the long term, the ban could set a dangerous precedent for regulating foreign companies, potentially leading to retaliatory measures against American businesses in China and other markets. Moreover, removing TikTok could limit the diversity of voices and perspectives in the digital ecosystem, further consolidating the power of large traditional media companies.

 

  1. Scenario 2: Sale of TikTok to an American Company

The sale of TikTok to an American company, as proposed by Joe Biden, could mitigate some national security concerns but would also raise questions about power concentration in the tech sector. Companies like Microsoft, Oracle, or even an investor consortium could acquire the platform, but the transition could be complex and disruptive for users and content creators. Moreover, the sale might not fully address concerns over data collection, as the underlying technology and algorithms would still be developed by ByteDance.


  1. Scenario 3: Creating a Sovereign Wealth Fund to Acquire TikTok

 Donald Trump's proposal to create a sovereign fund to acquire TikTok represents an innovative but controversial approach. On one hand, the U.S. government would have direct control over the platform, ensuring that user data is protected and that it is not used for Chinese propaganda. On the other hand, direct government intervention in the market could be seen as a violation of free-market principles and might raise concerns about the politicization of social media. Additionally, the effectiveness of a sovereign fund in managing a global platform like TikTok is questionable, given the complexity and dynamics of the industry.


Free Speech


The debate over TikTok is not just about technological and geopolitical competition between China and the United States; it also raises fundamental questions about ethics, human rights, and digital governance. Freedom of expression and access to information are essential pillars of any democratic society, and measures that may restrict these rights should be carefully evaluated to avoid setting dangerous precedents.


TikTok has become a crucial space for the expression of diverse communities, including racial minorities, LGBTQIA+ groups, political activists, and social movements. The platform provides an accessible means for these voices to be heard without the mediation of major traditional media outlets, allowing alternative narratives to gain traction. A ban on TikTok in the U.S. could therefore negatively impact these communities by limiting a space where diverse thoughts and cultures thrive. Moreover, TikTok has been a powerful tool for spreading information on human rights, exposing injustices, and mobilizing social movements. During protests such as Black Lives Matter in the U.S. and demonstrations in support of women's rights in Iran, the app played a crucial role in organizing events, sharing information, and amplifying voices often ignored by conventional media. Removing the platform could hinder public access to content that challenges dominant narratives and brings visibility to important social causes.


The ban on TikTok in the U.S. also raises concerns about the regulation of digital platforms in a global context. If a democratic country like the United States justifies the removal of a popular app under the argument of national security, it could set a precedent for authoritarian governments to do the same under similar pretexts but with more repressive political motivations. Paradoxically, the U.S. decision could strengthen the justification for these regimes to further restrict access to an open internet, reinforcing the concept of digital sovereignty to limit the flow of information within their borders.


Given these challenges, the most effective solution is not simply to ban TikTok but to develop regulatory mechanisms that ensure data transparency and security without compromising freedom of expression. This could include stricter oversight of data usage, requirements for local data storage, independent audits, and agreements that guarantee that decisions on censorship and content moderation follow democratic and transparent principles. The regulation of global platforms should be conducted with balance, considering both national security needs and the importance of digital freedom. Instead of resorting to sweeping bans, governments can invest in policies that strengthen user privacy, promote fair competition in the tech sector, and protect fundamental rights in the digital environment.


Therefore, the debate over TikTok should not be reduced to a matter of economic rivalry between China and the U.S. It involves deep discussions about digital governance, civil rights, and the future of an open internet. The decision on how to handle platforms of this scale will have lasting implications for online freedom worldwide.


US versus China 


China has been heavily investing in cutting-edge technologies such as artificial intelligence, 5G, and cloud computing, seeking not only to reduce its reliance on Western technologies but also to establish global standards in these strategic sectors. This move is part of a long-term vision driven by initiatives like the Made in China 2025 plan and the 2017 artificial intelligence development strategy, aiming to position the country as a global leader in technological innovation (NINIO, 2024).


However, its technological rise has raised concerns in Washington, with the central argument being national security risks, including the possibility of data collection and manipulation by the Chinese government. Yet, this protectionist approach may be counterproductive. Banning TikTok in the U.S. will not prevent China from continuing to develop and export its technologies to other markets, such as Europe, Latin America, Africa, and Southeast Asia. Moreover, such measures could encourage Beijing to further strengthen its technological autonomy by investing in strategic sectors like semiconductors, artificial intelligence, and alternative operating systems. Huawei, for example, has already shown resilience by developing its own software and chip ecosystem after American sanctions.


Instead of resorting to bans, the U.S. could adopt a more effective strategy to ensure its technological competitiveness. This would include significant investments in research and development, strengthening education in STEM (science, technology, engineering, and mathematics) fields, and creating a regulatory environment that fosters innovation. Additionally, international partnerships with allies such as the European Union, Japan, and South Korea could help establish alternative technological standards that maintain Western influence in these sectors.


In a scenario of growing technological rivalry, the competition between China and the U.S. will not be won solely through trade restrictions and sanctions. Long-term success will depend on the ability of each country to innovate and adapt, and the United States, historically a hub of innovation, may benefit more from reinforcing its own technological capabilities than by trying to artificially contain China's advancement.


Conclusion


The U.S. government's stance on TikTok reflects a convergence of national security interests, domestic politics, and geopolitical strategy. While concerns about data collection and Chinese influence are valid, the potential ban of the platform carries complex implications for the creative economy, U.S.-China relations, and the future of technological regulation. The proposal to create a sovereign fund to acquire TikTok, suggested by Trump, seems like an attempt to reconcile these concerns, but it also raises questions about government interference in the market. Ultimately, the TikTok case illustrates the dilemmas of a digitalized world, where innovation and security do not always align, and where political decisions have global repercussions. Resolving this impasse will require a delicate balance between protection, pragmatism, and long-term vision. Moreover, it is crucial to consider the ethical, social, and economic impacts of any regulatory measure, ensuring that users' fundamental rights and global business competitiveness are preserved.


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