WASHINGTON
(Reuters) - U.S. Treasury Secretary Steve Mnuchin said on Wednesday that
TikTok was under a national security review and that his agency would
make a recommendation to the president about the popular Chinese-owned
video-sharing app this week.
The
comments marked the first time the U.S. government has acknowledged
that TikTok was under review by the Committee on Foreign Investment in
the United States (CFIUS), which scrutinizes deals by foreign acquirers
for potential national security risks and is led by Treasury.
“TikTok
is under CFIUS review. We will be making a recommendation to the
president this week so we have lots of alternatives,” Mnuchin said.
Reuters
reported in November that the app’s Chinese parent, Beijing ByteDance
Technology Co was being probed by CFIUS over its $1 billion purchase of
social media app Musical.ly, after lawmakers raised concerns over how it
stores personal data as well as allegations of censorship.
A
TikTok representative said the company could not comment on CFIUS
matters, but added that TikTok was working to “develop a best-in-class
security infrastructure” and promote a safe app experience.
The
committee can force ByteDance to unwind the deal, or take other
measures to mitigate the national security threat. Reuters reported
earlier on Wednesday that ByteDance has received a proposal from some of
its investors, including Sequoia and General Atlantic, to transfer
majority ownership of TikTok to them. Some ByteDance investors are
valuing the popular app at about $50 billion.
Flanked
by Mnuchin, President Donald Trump said before leaving the White House
on a trip to Texas that “we are looking at TikTok.”
The
company is under fire in Washington, as relations between the Trump
administration and Beijing have grown chilly over the coronavirus and
China’s moves against Hong Kong. U.S. Secretary of State Mike Pompeo
said the administration was considering banning the app, and White House
Chief of Staff Mark Meadows said earlier this month that action was
coming in weeks.
Reporting
by Alexandra Alper; Writing by Doina Chiacu and Alexandra Alper;
Editing by Chris Reese, Bernadette Baum and Jonathan Oatis