The TikTok Bill Targets China’s Cultural Influence. That’s a Big Shift from the Tech War.
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The TikTok Bill Targets China’s Cultural Influence. That’s a Big Shift from the Tech War.

By MATT PETERSON
Thu, Mar 14, 2024 9:23amGrey Clock 3 min

Congress’ new swing at social-media app TikTok might seem like more of the same old U.S.-China tech war that’s been running for several years—just that now it has come for dancing teens.

But what leading advocates of the new TikTok bill want would significantly expand the scope of the U.S. government’s interventions into the economy in the name of national security. The law would effectively ban TikTok if it didn’t change owners out of Chinese hands. The hallmark of China-focused regulation in recent years has been to keep American stuff—advanced technology, data, and intellectual property—out of the hands of the Chinese military. The TikTok bill would attempt to do something different: regulate companies’ ability to wield cultural power over Americans.

U.S.-China competition has already been hugely consequential for both countries’ economies and the world. Flows of trade, capital, information, and people between the two have fallen by 28% over the past decade, a report out today on the state of globalisation by logistics company DHL finds. The rise of industrial policy and other political interventions in markets are helping keep inflation high worldwide. Any expansion of regulation into new areas could add to that pressure.

To be sure, the bill is still far from becoming law. It passed the House today with overwhelming margins, but it must still pass the Senate and be signed into law by the president. Its advocates make a strong case that something really is new when it comes to TikTok. But given the stakes, it’s worth understanding exactly what that new thing is.

The bill’s leading advocates want it for two reasons . One, they argue TikTok is effectively a vast data-collection tool that can hand information about Americans directly to the Chinese Communist Party, whose requests TikTok’s management can’t refuse. This is a familiar issue in tech regulation. It is also why U.S. government employees aren’t allowed to keep the app on their phones.

The other issue is more novel. This is the idea that TikTok can be used “to mobilise public opinion,” as one of the bill’s lead sponsors, Rep. Raja Krishnamoorthi (D., Ill.), put it in a hearing with the leaders of the U.S. intelligence community on Tuesday.

Many TikTok users saw a pop-up last week urging them to contact Congress about the pending legislation, and quite a few did. Doesn’t that show exactly how the Chinese Communist Party could manipulate Americans, Krishnamoorthi asked? “While I can’t speak to the specific example,” responded FBI Director Christopher Wray, “I can tell you that the kind of thing you’re describing illustrates why this is such a concern.”

Avril Haines, U.S. director of national intelligence said that she couldn’t rule out that the CCP would use TikTok just like that to intervene in the 2024 election, something the intelligence community warned about in a new public threat assessment issued this week.

The TikTok legislation would resolve that worry not by taking away TikTok’s ability to influence Americans—only a full ban would do that. Instead, it would give the government leverage to force ByteDance, the app’s parent company, to hand ownership to an American company. Americans could still be influenced— Meta , X, and other social-media companies have been the target of other foreign-influence campaigns—but they could at least be more confident U.S. enemies aren’t secretly try to push them ideas.

TikTok’s leadership doesn’t see the issues this way. It believes the legislation is intended to ban the app, not just force divestment, and says it doesn’t take orders from the Chinese Communist Party in any case. Its CEO is from Singapore, not China, and the company is working with U.S. tech company Oracle to keep its data local to the U.S.

What no one seems to dispute is that TikTok really is wildly influential. Its 170 million users care deeply about what happens on the platform.

The question Congress is raising is whether some of TikTok’s users have been manipulated. This is a version of the argument Democrats made when it became apparent that Russia tried to intervene in the 2016 election to favor President Trump. The problem with that logic, as Republicans pointed out at the time, is that it’s not clear where it leads. If a bunch of Americans vote for the wrong reasons, does that mean the election is illegitimate? That’s a dangerous road to go down.

The point of the TikTok bill is to essentially head the debate off at the pass. Let there be no questions about the legitimacy of voting, because there wasn’t any illegitimate foreign influence behind it in the first place.

As Chris Fenton, a former Hollywood executive-turned-China critic who advised the bill’s sponsors, points out in an essay for RealClearPolitics , there is some precedent here. The Federal Communications Commission prohibits control of U.S. broadcasters by hostile governments. “Why should TikTok be an exception?,” he asks.

That’s the question the Senate will have to answer, while considering the costs of a major expansion of the U.S.-China fight and the risk that calling into question the political judgment of millions of U.S. social-media users will backfire in unexpected ways.

This decision will matter for much longer than the next dance craze.



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Former New Hampshire Gov. Chris Sununu delivered a warning to Treasury Secretary Scott Bessent during a recent visit to Washington: Already-high airfares will surge if the war in Iran doesn’t end soon.

Sununu, a Republican who represents some of the biggest airlines as president of the industry group Airlines for America, has for weeks sounded the alarm to Trump administration officials about the economic fallout from high jet fuel prices. The war, Sununu has argued, must come to a close soon, or things will get worse.

Administration officials have gotten the message.

Privately, President Trump’s advisers are increasingly worried that Republicans will pay a political price for the rising fuel costs, according to people familiar with the matter. Many of those advisers are eager to end the war, hoping prices will begin to moderate before November’s midterm elections.

The fallout from the U.S.-Israeli attack in late February has slowed traffic through the Strait of Hormuz, a vital shipping lane, triggering a sharp increase in oil, gasoline and jet-fuel prices.

That means consumers are grappling with high costs ahead of the summer travel season, as they consider vacation plans.

Sixty-three per cent of Americans said they put a great deal or a good amount of blame on Trump for the increase in gas prices, according to a new poll conducted by NPR, PBS and Marist.

More than 8 in 10 Americans said struggles at the gas pump are putting strain on their finances.

Jet-fuel prices roughly doubled in a matter of weeks after the war began, and they have remained high. Airlines have said that will add billions of dollars of additional expenses this year, squeezing profit margins.

U.S. airlines spent more than $5 billion on fuel in March—up 30% from a year earlier, according to government data.

Carriers have been raising ticket prices, hoping to pass the cost along to consumers, and they are culling flights that will no longer make money at higher price levels.

In March, the price of a U.S. domestic round-trip economy ticket rose 21% from a year earlier to $570, according to Airlines Reporting Corp., which tracks travel-agency sales.

So far, airlines have said the higher fares haven’t deterred bookings and they are hoping to recoup more of the fuel-cost increases as the year goes on.

Earlier this week, Trump said the current price of oil is “a very small price to pay for getting rid of a nuclear weapon from people that are really mentally deranged.”

Secretary of State Marco Rubio told reporters that if Iran got a nuclear weapon, the country would have more leverage to keep the strait closed and “make our gas prices like $9 a gallon or $8 a gallon.”

Trump has taken steps in recent days to bring the war to an end. Late Tuesday, the president paused a plan to help guide trapped commercial ships out of the Strait of Hormuz, expressing optimism that a deal could be reached with Iran to end the conflict.

Crude oil prices fell below $100 a barrel on Wednesday, after reports that Iran and the U.S. are working with mediators on a one-page framework to restart negotiations aimed at ending the conflict and opening the strait.

Sununu said Trump administration officials are conscious of the economic fallout from the war: “They get it…and I think that’s why they’re trying to get through the war as fast as they can.”

But he cautioned that it could take months for prices to return to prewar levels.

“Ticket prices won’t go down immediately” after the strait is fully reopened, Sununu said. “You’re looking at elevated ticket prices through the summer and fall because it takes a while for the prices to go down.”

Since the initial U.S.-Israeli attack in late February, Sununu has met in Washington with National Economic Council Director Kevin Hassett, representatives from the Transportation Department and senior White House officials.

A White House official confirmed that Hassett and Sununu have discussed the effect of increased fuel prices on the airline industryThe official said the conversation touched on how the industry can mitigate the impact of high jet fuel prices on consumers.

“The president and his entire energy team anticipated these short-term disruptions to the global energy markets from Operation Epic Fury and had a plan prepared to mitigate these disruptions,” White House spokeswoman Taylor Rogers said, pointing to the administration’s decision to waive a century-old shipping law in a bid to lower the cost of moving oil.

Rogers said the administration is working with industry representatives to “address their concerns, explore potential actions, and inform the president’s policy decisions.”

A Treasury Department spokesman pointed to Bessent’s recent comments on Fox News that the U.S. economy remains strong despite price increases. The spokesman said Treasury officials have met with airline executives, who have reaffirmed strong ticket bookings.

“We’re cognizant that this short-term move up in prices is affecting the American people, but I am also confident, on the other side of this, prices will come down very quickly,” Bessent told Fox News on Monday.

The war has already contributed to one casualty in the industry: Spirit Airlines. Company representatives have said they were forced to close the airline because the sustained surge in jet-fuel prices derailed the company’s plan to emerge from chapter 11 bankruptcy.

The Trump administration and Spirit failed to come to an agreement for the company to receive a financial lifeline of as much as $500 million from the federal government.

Transportation Secretary Sean Duffy has argued that the Iran war wasn’t the cause of Spirit’s demise, pointing to the company’s past financial struggles, as well as the Biden administration’s decision to challenge a merger with JetBlue.

Other budget airlines have also turned to the federal government for help since the U.S.-Israeli attack. A group of budget airlines last month sought $2.5 billion in financial assistance to offset higher fuel costs, and they separately wrote to lawmakers asking for relief from certain ticket taxes.

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