TikTok confirms the U.S. has threatened ban if Chinese parent ByteDance doesn't sell stake - CNBC

Washington asked TikTok's Chinese parent company ByteDance to divest its stake in the short video app or face a possible ban in the U.S., CNBC has confirmed.

TikTok spokesperson Brooke Oberwetter told Reuters that the company had recently heard from the U.S. Committee on Foreign Investment in the United States (CFIUS).

A person familiar with the matter, who requested anonymity due to the sensitivity of the situation, told CNBC that TikTok had been contacted by CFIUS but the firm was seeking further clarity from Washington.

"If protecting national security is the objective, divestment doesn't solve the problem: a change in ownership would not impose any new restrictions on data flows or access," the spokesperson said.

"The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing."

Washington asked TikTok's Chinese parent company ByteDance to divest its stake in the short video app or face a possible ban in the U.S., CNBC has confirmed.