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The Ripple Effect of the TikTok Crackdown: Apple and Tesla Brace for Impact Amidst China-U.S. Tensions

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The Expert’s Warning

As the TikTok crackdown bill garners approval from the House of Representatives, speculations are rife about potential retaliatory measures from China. Noted investor, Eric Jackson of EMJCapital, points towards Apple Inc and Tesla Inc as prime targets in the impending storm.

Bill Fallout

Should the bill make its way through the Senate and secure President Joe Biden’s signature, it would mandate the Chinese owners of TikTok to offload the app within five months or face a ban in the United States.

In an interview with CNBC’s Last Call, Eric Jackson raised concerns over possible repercussions, pondering aloud, “What if the Chinese government demanded that AAPL and TSLA sever ties with their Chinese operations?”

Jackson’s apprehensions were echoed by his assertion, “I think for sure there would be retaliation.”

Implications of the Bill

The bill, commanding a resounding 352 affirmative votes, stands to impact approximately 150 million American TikTok users. Potential outcomes include directives for app stores like Apple and Google to expunge TikTok from their platforms in the event of a ban.

See Also: Expert Calls Trump’s $91.6M Bond Payment A ‘National Security Nightmare,’ Raising ‘Troubling New Question

ByteDance, the parent company of TikTok, contends that it staunchly safeguards U.S. data from Chinese access. Nonetheless, a probe by The Wall Street Journal underscores deficiencies in ByteDance’s initiative “Project Texas,” a $1.5 billion project designed to fortify U.S. data protection.

Despite the bill’s looming presence, TikTok affirmations hint at an intent to appeal before contemplating any disengagement from ByteDance.

Significance in Context

The bill’s inception unfolds against a backdrop of concerns surrounding TikTok’s potential sway on U.S. electoral processes. Director of National Intelligence, Avril Haines, has sounded alarms over China exploiting TikTok to meddle in the upcoming 2024 U.S. elections.

Simultaneously, former President Donald Trump has emerged as an opponent of a conceivable TikTok prohibition, positing that such a move would heavily favor Meta Platforms’ Facebook.

In the face of an imminent TikTok prohibition, business magnate Mark Cuban invokes the example of Elon Musk and X while deliberating on social media platforms’ responsibilities towards underage users.

Read Next: Elon Musk Says ‘Of Course’ After Russia Threatens US With Nuclear War If Statehood Threatened

Image Via Shutterstock

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