Friday April 30, 2021 By David Quintanilla
ByteDance Names Current Company CFO Shouzi Chew as the New CEO of TikTok

So after all of the efforts of the US Authorities to force TikTok to detach itself from its Chinese roots, after the threats of a full ban on the app except it was offered into US possession, after various court cases difficult and defending the US Authorities’s ruling.

In spite of everything of this, the one final result of that whole course of, the one factor that is really occurred in response, is that TikTok has misplaced a US-based CEO and appointed a Chinese language one as a substitute.

Which appears considerably ironic, actually.

As we speak, TikTok has announced that present ByteDance CFO Shouzi Chew has been appointed as the brand new CEO of TikTok. Chew will succeed former Disney exec Kevin Mayer, who lasted around 3 months in the role, earlier than leaving in August last year within the midst of the platform’s stoush with the Trump Administration. 

On the time, it appeared as if Mayer needed to keep away from the potential unfavourable fallout from the corporate’s ongoing battle with the US Authorities, however Mayer has since explained that he left as a result of it did certainly appear {that a} full sale of TikTok was imminent.

As defined by Mayer (to CNBC):

“It did look as if that was a severe ruling by the CFIUS guys, that it needed to be divested, and it was going to be divested. The actual fact is, the job that I signed up for was going to be gone, and I didn’t need to go run a division of Microsoft or Oracle.”

Microsoft and Oracle, after all, had been the leading candidates to acquire TikTok at the moment, however the deal, in the long run, did not find yourself going forward. TikTok managed to delay a closing ruling by way of repeated (and dear) authorized challenges to the US Authorities’s order, which meant that the ultimate determination was pushed back till after the US Election. Which then put TikTok’s destiny largely within the arms of US voters. If Trump was returned, there was an excellent probability that he would proceed to push for TikTok’s full separation from China.

However with a Biden victory, that meant a recent set of eyes to take a look at the TikTok deal. And whereas the Biden admin continues to be, reportedly, weighing if and the way it tackles safety issues associated to TikTok, and the potential that it may share information on US residents with the CCP, proper now, it looks as if the push to separate TikTok from its Chinese language possession is off the playing cards. Which, as famous implies that the corporate has continued unimpacted by the problem.

And now, it is appointed a ByteDance exec into the highest job on the firm.

That additionally, after all, will imply a change in position for present CEO Vanessa Pappas, who stepped into the highest job to interchange Mayer in an interim capability. Recognizing her efforts, Pappas will now change into the COO of the corporate, advancing from her earlier title as common supervisor earlier than the acquisition saga.

Pappas has helped information the corporate by way of an extremely difficult transition interval, which has additionally integrated the COVID-19 pandemic, and lots of legal and regulatory challenges, in a number of areas, because the app expands all through the world.

Pappas has additionally needed to face a slew of challengers rising up for the app, with Facebook, Instagram, YouTube and Snapchat all including TikTok clone functionalities over the previous 12 months. 

Now Pappas strikes into a job extra aligned together with her abilities and expertise, with Chew taking up the extra CEO-type obligations concerned with enlargement of the app.

And for readability, whereas Chew is at the moment the CFO at ByteDance, he’s really primarily based in Singapore, so that might reduce the issues round ongoing linkage with the Chinese language Authorities.

However in all probability not. The difficulty that regulatory authorities have is that underneath China’s cybersecurity laws, any Chinese language-owned firm has to share consumer information with the CCP, on request. Whether or not such a request has been, or will ever be made, we do not know, but when a request for such did come by way of, underneath the regulation, because it’s constructed, TikTok would, theoretically, need to comply, placing all of TikTok’s consumer data, on tens of millions of individuals world wide, into the Chinese language Authorities’s arms.

TikTok has tried to reassure authorities that this may not occur, repeatedly noting that it will not share overseas consumer information with the Chinese language Authorities, whereas ByteDance additionally, at one stage, tried to say that it was now ‘a Cayman Islands-based business‘, not a Chinese language one, because it was now integrated within the tax haven. 

But it surely does nonetheless appear that its hyperlinks to China stay sturdy, which can keep these issues.

And because the Chinese language regime continues to exert its energy, in varied world conflicts and relations, these tensions, and points, will stay.

Whether or not that will likely be sufficient for the brand new US administration to take a harsher view of TikTok itself, we’ll have to attend and see.

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