Biden orders Tiktok to sell or face nationwide bans 🇨🇳

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New TikTok Law Intensifies US-China Tech Trade War

President Biden recently signed legislation that mandates the sale of TikTok by its Chinese parent company, ByteDance, within a year or face a complete ban across the United States. This significant move marks a new height in the ongoing tech conflict between the U.S. and China, signaling a tough stance on the security concerns associated with Chinese tech firms.

The new law, embedded within a broader bill aimed at providing foreign aid to Israel, Ukraine, and Taiwan, stipulates that ByteDance must divest its ownership of TikTok within twelve months to avoid the app's shutdown. This decision follows years of scrutiny over TikTok, which was launched by ByteDance in 2017 after acquiring the karaoke app Musical.ly. With around 170 million American users, TikTok has emerged as a major player in the short-video platform arena and a key news source for a third of the nation's youth, according to Pew Research Center.

Despite TikTok's popularity, concerns persist about potential Chinese government influence over the app, prompting action from Washington. The Biden administration and lawmakers argue that TikTok's ties to China pose a risk of espionage and other malign activities against Americans, including military personnel and government workers.

Senator Cantwell emphasized that the legislation is not aimed at punishing TikTok specifically but is a measure against potential threats from foreign adversaries. In response, TikTok's CEO Shou Zi Chew assured users that the platform is prepared to challenge the law in court and expects to prevail, citing constitutional protections.

The law also imposes operational challenges for TikTok; if not sold in time, web-hosting services will be prohibited from supporting the app, and it will be removed from app stores, effectively making it inoperable. The sale is complicated by the fact that ByteDance's algorithm, a key asset of TikTok, is under Chinese government control, adding a layer of complexity to any potential deal.

This move has sparked debates about free speech and the role of government in regulating online platforms, with critics arguing for broader privacy protections rather than outright bans. Clip here

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Thailand's $36BN Land Bridge: The Next Panama Canal?

The Strait of Malacca, bordered by Indonesia, Malaysia, and Singapore, is a crucial artery for global maritime trade, with nearly 40% of the world's cargo flowing through it. Unlike the Panama or Suez canals, it links Asia to India, the Middle East, and Europe. Thailand's proposed land-bridge megaproject, could significantly alter global trade dynamics, showcasing one of today's most ambitious infrastructural undertakings.

GLOBAL TRADE SNIPPETS

BRICS Try Stablecoin For International Trade Settlement Considering the significant gold deposits possessed by the member countries, there is much speculation that the proposed BRICS stablecoin would be backed by gold, even though details about it are still limited.

Ship traffic through Suez Canal plunges by 66% after Red Sea attacks. The stark figures shed light on the impact of a period of disruption in the Red Sea since the escalation of conflict in the Middle East. Container ships along the key trade routes have been repeatedly attacked since November.

US sanction threats against Chinese banks over Russia trade ties risk ‘gargantuan’ financial instability. Reports suggest US has ‘preliminarily discussed sanctions on some Chinese banks’ over their trade with Russia. Analysts say moves to remove China from the Swift interbank financial system could create a ‘huge problem’ for global trade

Baltimore sues owner and manager of 'unseaworthy' Dali over bridge collapse. The city says the Dali was "clearly unseaworthy" and accuses its owners and manager of negligence which brought about the deaths of 6 people and complete destruction of the Key Bridge.

Taiwan's main export market has now shifted to the US, surpassing mainland China, in a sign of a 'strategic shift' amid technological decoupling. Taiwan’s US$26.625 billion worth of exports shipped to the US in the first quarter beat the US$22.407 billion sent to mainland China for the first time in a decade.

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