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2020.07.19 12:40 GMT+8

TikTok postpones plans for overseas headquarters

Updated 2020.07.20 22:49 GMT+8
By Chen Yurong

Chinese short video platform TikTok has put on hold its plans to establish a global headquarters in the UK, given the suppressing actions of some countries led by the United States in the name of security concerns, sources close to the company told CGTN.

The Sunday Times cited sources as saying that London was being considered as an option for the headquarters and the company planned to invest as much as 3 billion pounds on making the UK its new home outside China.

TikTok's owner ByteDance Ltd told CGTN on Monday that the company has no announcements to make regarding TikTok's headquarters so far, stressing that ByteDance has always been committed to becoming a global company.

A TikTok logo is displayed on a smartphone, January 6, 2020. /Reuters

This comes days after UK's decision to ban Chinese tech giant Huawei Technologies from the country's 5G infrastructure, telling all network providers to remove all Huawei kits by 2027. 

Iain Duncan Smith, former head of UK's Conservative Party, reportedly said TikTok should be banned because of its proximity to "Chinese intelligence services."

"There are real serious concerns with Huawei over the role that they play. TikTok is the product of a company called ByteDance which has roots everywhere at the moment, a bit like Huawei. They're growing like mad. Everybody is reviewing the company," Smith said. 

The company denies these allegations. "The U.K. is one of our most important markets globally, with a talented and diverse team in London, including senior leadership," said a ByteDance spokesperson.

"U.K. employees have quadrupled over the last year and we expect continued strong growth. We remain fully committed to investing in London."

The Sunday Times cited people familiar with the matter as saying that London has always been one of TikTok's options for setting up its headquarters. But for now, TikTok must consider the U.S. government's next move and its impact on the company's operations. TikTok has nearly 50 million users in the United States. Once it is banned, it will cause a major blow to the company. Therefore, TikTok had to shelve its UK headquarters plan until the restriction policy was clear.

The short video app is facing heavy scrutiny in Washington over suspicions that China could force the company to turn over user data. The company's plan to set up headquarters abroad is obviously impacted by regulatory policies of Western nations. 

Earlier this month, U.S. Secretary of State Mike Pompeo suggested the possible move of banning TikTok in the U.S. during an interview with Fox News.

Pompeo was asked by the host whether the United States should be considering a ban on Chinese social media apps, "especially TikTok." He said: "With respect to Chinese apps on people's cellphones, I can assure you the United States will get this one right too."

Washington's top diplomat added that people should only download the app "if you want your private information in the hands of the Chinese Communist Party."

TikTok rejected these accusations. "TikTok is led by an American CEO, with hundreds of employees and key leaders across safety, security, product, and public policy here in the U.S.," a TikTok spokesperson said in a statement following Pompeo's comments. 

"We have no higher priority than promoting a safe and secure app experience for our users. We have never provided user data to the Chinese government, nor would we do so if asked."

Read more: China urges U.S. to stop suppress Chinese companies, in response to TikTok ban

ByteDance has made several high-profile executive hires in recent months. In January, it appointed former Microsoft intellectual property chief Erich Andersen as global general counsel, after Vanessa Pappas, a veteran YouTube executive, was hired to run its U.S. operations last year.

In May, the company poached Kevin Mayer, a former Walt Disney co-executive, to be TikTok's chief executive, who is based in the United States.

TikTok, available in 39 languages, allows users worldwide to create short videos powered by music. It has gone viral since its launch in 2017 and is surging in popularity as a number of people in many countries are confined to their residences due to the COVID-19 pandemic.

As reported by app data firm Sensor Tower, as of April 29, the app has been downloaded over two billion times worldwide, with about 800 million monthly active users, which has made TikTok by far the biggest digital success for a Chinese-owned company in the world. 

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