Washington, United States

A US government national security review of the social media app TikTok is nearly complete and will deliver a recommendation to the White House this week, Treasury Secretary Steven Mnuchin said Wednesday.

Advertisment

The comments marked the first time the US government has acknowledged that TikTok was under review by the Committee on Foreign Investment in the United States (CFIUS), which scrutinises deals by foreign acquirers for potential national security risks and is led by Treasury.

"TikTok is under CFIUS review and we'll be making a recommendation to the president on it this week," Mnuchin said. "We have lots of alternatives."

Also read: US Republicans worry China might use TikTok to meddle in election

Advertisment

The news comes amid increasing concerns voiced by US officials and lawmakers about TikTok's links to China and its potential use for espionage, an allegation consistently dismissed by the company.

In November last year, the app's Chinese parent company, 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.

Also read: Japan lawmakers to urge government to put curbs on TikTok use

Advertisment

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.