Despite international hires, TikTok is Chinese at its core

🌈 Abstract

The article discusses the close ties between TikTok's U.S. operations and its Chinese parent company ByteDance, despite TikTok's efforts to downplay its China connections. It highlights how ByteDance executives are heavily involved in managing key departments and making strategic decisions at TikTok's U.S. offices, which raises concerns about potential censorship and data security issues.

🙋 Q&A

[01] TikTok's Ties to ByteDance

1. What are the key ways in which ByteDance's influence is seen in TikTok's U.S. operations?

• The onboarding process and work communications at TikTok's U.S. offices are predominantly in Chinese
• ByteDance executives, rather than TikTok's CEO Shou Zi Chew, manage key departments like monetization that have thousands of U.S.-based employees
• Managers from Douyin, TikTok's Chinese sister app, have been transferred to the U.S. to help replicate Douyin's commercial success
• Many tech teams at TikTok work closely with China-based Douyin staff, with 40-60% of the members being based in China

2. How does TikTok's close relationship with ByteDance benefit its operations?

• ByteDance executives can seamlessly transfer lessons and best practices from Douyin to TikTok
• The shared-service platform model allows TikTok to leverage ByteDance's larger pool of Chinese talent instead of building a U.S. workforce from scratch

3. What are the potential challenges and vulnerabilities posed by TikTok's ties to ByteDance?

• The involvement of China-based managers in TikTok's U.S. operations exposes it to political scrutiny and national security concerns in the U.S.
• It raises questions about whether TikTok can be considered a separate entity from ByteDance, which complicates a potential sale of the app
• The heavy reliance on ByteDance means TikTok may struggle to operate independently without the support of its China-based parent company

[02] TikTok's U.S. Workforce and Localization Efforts

1. How is the composition of TikTok's U.S. workforce structured?

• TikTok teams that interact with American clients, users, and regulatory bodies have fewer Chinese employees
• The U.S. Data Security team, set up to address American national security concerns, exclusively hires U.S. citizens or permanent residents
• Some new teams launched after 2022 are completely U.S.-based

2. What are the challenges TikTok faces in localizing its operations in the U.S.?

• ByteDance's failure to give more autonomy and decision-making power to American local employees has made TikTok vulnerable to criticism
• The close ties between TikTok and ByteDance raise concerns about whether TikTok can truly operate as a separate entity

3. How might a potential sale of TikTok to an American company help address the localization issues?

• An acquisition by a U.S. company could allow TikTok to more successfully localize its operations and give American employees a greater say
• In the long term, the more localized TikTok becomes, the better it may be able to navigate the political and regulatory landscape in the U.S.