Fact vs. Fiction: Is TikTok’s Parent Company, ByteDance a Chinese Company?

Claim by Senator Rand Paul:

Senator Rand Paul stated on Fox News that TikTok’s owner, ByteDance, is not a Chinese-owned company.

Reasoning:

ByteDance, TikTok’s parent company, was founded by Chinese entrepreneurs and is headquartered in Beijing. Despite this, it’s reported that around 60% of ByteDance is owned by global institutional investors such as Blackrock, General Atlantic, and Susquehanna International Group. Approximately 20% is owned by the company’s founders, and another 20% by its employees, including over 7,000 Americans.

The company asserts that it is not owned or controlled by any government or state entity. Concerns in the U.S. stem from the potential national security threat TikTok could pose, given fears that ByteDance could be compelled to share data with the Chinese government. However, ByteDance has consistently denied these allegations, emphasizing its efforts to safeguard U.S. user data, including a plan to store this data with Oracle in the United States under “Project Texas.”

The ongoing debate over TikTok in the U.S. involves legislative measures that could lead to TikTok’s forced sale or ban due to these national security concerns. ByteDance’s history, its global ownership structure, and the company’s efforts to address U.S. regulatory concerns form the core of this complex issue.

Fact or Fiction?

Mostly True. While ByteDance, TikTok’s parent company, was founded by Chinese entrepreneurs and is headquartered in Beijing, the claim that it is a Chinese-owned company simplifies its ownership structure. A significant portion of the company is owned by global investors and its employees worldwide, challenging the notion that it is purely “Chinese-owned.”