TikTok controversy shows U.S. short-sightedness

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

In today's deeply integrated global digital economy, the fate of one social media app – TikTok – has become a focal point of Sino-U.S. economic and trade frictions. This seemingly absurd reality reveals deep-seated contradictions in the current international economic order. The contest over data security and corporate rights has transcended TikTok's survival, evolving into a major test for global trade rules, market fairness and how major powers interact.

China's Ministry of Commerce has taken a clear, firm stance: It will not waver in safeguarding Chinese enterprises' legitimate rights and interests, and handling the TikTok issue in accordance with laws and regulations is non-negotiable. It has also stated that "China has never required enterprises to provide overseas data in violation of rules," answering the "security threats" hype of the U.S.  

The TikTok controversy lays bare the distortion of the global economic and trade order under U.S. hegemonic logic and the urgency to break the deadlock through rational dialogue.

Using 'security' to stifle Chinese tech

Since entering the U.S. market, TikTok quickly gained nationwide popularity with its creativity, rich content and user-friendly experience, winning favor especially among young Americans. It has not only given U.S. users a platform to showcase themselves and share their lives but also injected new vitality into the U.S. creator economy, fostering jobs and economic benefits.

To address U.S. data security concerns, TikTok has made significant compromises. It  launched "Project Texas" to store U.S. user data on Oracle's servers so that the data stays in the U.S., allowed independent third-party audits, and even agreed to give up algorithm control.  

Yet the U.S. government remains unsatisfied. Its true intent is clear: to use "security" as a pretext to curb Chinese tech enterprises' global competitiveness and maintain U.S. monopoly in the digital economy.

Under the guise of "national security threats," the U.S. has launched a series of repressive measures against TikTok. It is demanding that ByteDance, TikTok's parent company, sell TikTok's U.S. operations and is constantly hyping data security risks. These actions are marked by arbitrariness and uncertainty. In fact, the U.S. has long abused regulatory power, framed China as a "threat" to its national security and used state power to suppress Chinese enterprises – all to maintain its hegemonic status.  

China's rapid rise in tech has put unprecedented pressure on the U.S., and TikTok's global success is a vivid example of China's technological innovation. By suppressing firms like TikTok, the U.S. seeks to hinder China's tech industry and consolidate its own global tech leadership with a short-sighted, selfish move.

Negative impacts and the way forward

U.S. actions have harmed not only Chinese enterprises but also the U.S. itself and the global economy. Domestically, they have damaged the U.S. market's international reputation and consumer confidence.  

A country that frequently uses administrative means to interfere in normal market operations will struggle to gain international investors’ and enterprises’ trust in its market environment. This will reduce foreign enterprises' willingness to invest and operate in the U.S., ultimately hurting U.S. economic growth and job creation.

Globally, U.S. actions have undermined market rules and the international economic and trade order. In the era of globalization, countries' economies are closely linked, forming an interdependent industrial and supply chain system. The U.S. abuse of state power to suppress Chinese enterprises has disrupted fair competition and destabilized global industrial and supply chains, threatening broader global cooperation and hindering global economic recovery.

The Sino-U.S. talks on trade and economy starting in Spain today offer a crucial opportunity to resolve the dispute. Addressing each other's concerns through dialogue is the best solution for all parties. China has always adhered to mutual respect and equal consultation, promoting communication and cooperation with the U.S. It is urging the U.S. to abandon prejudice, adopt a rational, pragmatic attitude and work with it toward common goals.

For the U.S., stopping its self-defeating actions is essential. Providing an open, fair, just and non-discriminatory business environment for foreign enterprises, including TikTok, would benefit not only those enterprises but also the U.S. itself. An open, inclusive market will attract more international businesses and investment, driving diversification and innovative development of the U.S. economy.

As the world's two largest economies, China and the U.S. bear the responsibility of maintaining global economic stability and development. In trade and economy, the two should resolve differences through dialogue, consultation and cooperation, and jointly promote an open, inclusive, balanced and benefit-sharing global economic governance system. This aligns with the fundamental interests of both Chinese and American people, as well as the common interests of people worldwide.

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