U.S. secretary of state Mike Pompeo said the Trump administration is looking into banning popular Chinese social media apps. Like Tik-Tok here in the U.S now separately Tik-Tok said it will quit hong kong after China imposed. A new security law on the city we’ve got yahoo finances tech editor than Howley. Here to break it all down for us good morning than I want to start with Pompeo’s comments first. Up what’s the concern here that I guess for a long time people have been talking about Tik-Tok. You know gathering our important consumer data and what are they doing with. That data is that what’s behind what Pompeo’s saying here yeah there are concerns obviously. That being a Chinese company bites dance the main company behind Tik-Tok. That user data from within the U.S could make its way into mainland China. And then they would be able to then funnel that to the people’s republic of china army and then that would then expose. User data from the U.S to the Chinese army and I think that’s really the fear here it’s something similar that we’ve seen from other companies. Zoom for instance is one of those that has feared Huawei obviously that’s the reason why the U.S is the ban on Huawei technology.
For 5g networks but for Tik-Tok this really comes down to is user data used. And then sent back to China and according to white dance the company behind Tik-Tok. That’s not really the case they have they say they have the U.S head of the company. They also have employees in us and they say that they wouldn’t share any user data. With the Chinese government if asked but that’s something we’ve also heard from Huawei. As well and zoom the other issue that Tik-Tok says they’re facing is they’ve gone ahead. And used no they’re no longer using Chinese moderators for Tik-Tok itself so they are pulling out. Though they said of hong kong that’s really kind of a way of placating likely both the U.S government. And the Chinese government obviously china with a new security law there.
Basically wanting access to information the U.S government’s saying they don’t want to allow things. Like that from u.s citizens so they’re basically just going to pull out and appease both sides. Than is one of the read-through here read-throughs here that Tik-Tok’s. The overall business might have a lower total addressable market I don’t think so you know hong kong is a much smaller area. They don’t really make much money out of hong kong itself. I think really what they want to do is ensure that they’re able to stay active in the U.S now. India has banned the app their Tik-Tok and fights dance they’re making please to the Indian government saying.
Look we have employees in India basically the same kind of type of conversation. They’re having with the U.S we have employees there we’re not going to share anything. With the Chinese government or the people’s liberation army if we don’t have to and or even. If we’re asked so that’s kind of where the conversation is for them right now. Then I want to get back to Tik- Tok pulling out of hong kong google facebook twitter. Saying they want to do the same because of new restrictions put on hong kong.
They don’t want to give up user data the way they are requesting is this the right move here. What are the larger implications for big tech yeah? I think when you look at it you know Tik-Tok and google facebook those like in hong kong it’s a different situation. Just because Tik-Tok is just cutting itself out entirely from the equation. Whereas the likes of apple google facebook they’re still going to operate in that area. But they aren’t going to become applying with any requests from authorities to share data. And that’s something that you know they do around the world they do cooperate with government sample. For instance, cooperates with the Chinese government all the tech companies. We, Will, say the same thing we comply with local laws and that’s something that you know leaders in the U.S.
Have obviously taken issue with uh but as far as this new security law goes they’re saying. That they’re not going to cooperate with anything the police ask from hong kong. Because they know that that would then go to the Chinese government. It’s worth noting that Google doesn’t have a presence or Facebook doesn’t have a presence in the mainland. China but they do in hong kong so this is really their own only kind of entry into the Chinese market. And it’sits an issue that they’re obviously taking seriously. And knowing that they’ re going to kind of fight back against having to provide information.