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TikTok: Technology Overview and Issues using U.S. software or technology to Huawei, another Chinese company, without first obtaining a license to do so.56 This restriction has been called a “lethal blow”57 to the company. Another mechanism is the use of protectionist practices that privilege domestic entities’ access to domestic markets. For example, China requires U.S. telecommunications companies to enter into a partnership with a Chinese company to provide services in that country. In June 2020, the Senate Committee on Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations issued a report, “Threats to US Networks: Oversight of Chinese Government Owned Carriers.” The report notes that while China has access to the U.S. telecommunications market, U.S. companies do not have that same level of access in China. China does not provide US telecommunications companies reciprocal access to the Chinese market and requires foreign carriers seeking to operate in China to enter into joint ventures with Chinese companies. These joint ventures often require U.S. companies to give their technology, proprietary know-how, and intellectual property to their Chinese partners. Since China was allowed to join the World Trade Organization in 2001, the report notes that “not a single foreign firm has succeeded in establishing a new joint venture” to provide basic telecommunications services in China.” Related Congressional Activity Congress began taking an interest in TikTok as early as October 2019, when Senator Marco Rubio reportedly called for a formal investigation into whether TikTok posed a national security risk.58 Later that month, Senators Charles Schumer and Tom Cotton sent a letter59 to the Acting Director of National Intelligence, Joseph Maguire, expressing their concerns about TikTok and the national security risks they believe it poses. More formally, Congress has scrutinized TikTok in two hearings, and Members have introduced three related bills. Hearings The Senate Judiciary Committee’s Subcommittee on Crime and Terrorism has held two hearings on, among other topics, the impact of Chinese smartphone apps on U.S. citizens’ privacy: “How Corporations and Big Tech Leave Our Data Exposed to Criminals, China, and Other Bad Actors” was held on November 5, 2019.60 “Dangerous Partners: Big Tech and Beijing” was held on March 4, 2020.61 56 “Commerce Department Further Restricts Huawei Access to U.S. Technology and Adds Another 38 Affiliates to the Entity List,” U.S. Department of Commerce, August 17, 2020, at https://www.commerce.gov/news/press-releases/ 2020/08/commerce-department-further-restricts-huawei-access-us-technology-and. 57 Sherisse Pham, “New Sanctions Deal ‘Lethal Blow’ to Huawei. China Decries US Bullying,” CNN.com, August 18, 2020, at https://www.cnn.com/2020/08/17/tech/huawei-us-sanctions-hnk-intl/index.html. 58 Makena Kelly, “TikTok Should Be Investigated for Censorship, Marco Rubio Says,” TheVerge.com, October 9, 2019, at https://www.theverge.com/2019/10/9/20906971/tiktok-censorship-china-bytedance-musically-marco-rubio- senate-mnuchin-cfius-treasury. 59 Senator Tom Cotton, “Cotton, Schumer Request Assessment of National Security Risks Posed by China-Owned Video-Sharing Platform, Tiktok, a Potential Counterintelligence Threat with over 110 Million Downloads in U.S., Alone,” press release, October 24, 2019, at https://www.cotton.senate.gov/?p=press_release&id=1239. 60 The hearing page with archived video and other documents is online at https://www.judiciary.senate.gov/meetings/ how-corporations-and-big-tech-leave-our-data-exposed-to-criminals-china-and-other-bad-actors. 61 The hearing page with archived video and other documents is online at https://www.judiciary.senate.gov/meetings/ Congressional Research Service 10PDF Image | TikTok: Technology Overview and Issues Updated October 21, 2020 Congressional Research Service
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