Vitaliy Katsenelson on the forced sale of TikTok

Then there is the TikTok fiasco, which is still unravelling. The US government fears TikTok’s unchecked presence in the US, the data it may collect about US consumers, and what it will do with it. This is understandable. However, the way the US has dealt with the issue will be perceived as unconscionable by both China and, more importantly, the rest of the world. 

The US government gave an ultimatum to TikTok get out of the US or be sold to a US-based company. But then President Trump demanded that whoever buys TikTok must pay the US government “key money” (a commission). In other words, since this “key money” will lower TikTok’s purchase price, TikTok is basically paying the US government for… I’m not sure what. This is extortion. Mobsters do this, not the US government. 

Actually, other countries, including China, do this. Apparently, it is done in commercial real estate, as well. But we are the shining beacon of democracy; we are the United States of America. We should be doing the opposite; we should make sure that this sale process is fair and above board.

~ Vitaliy Katsenelson, "U.S. and China: In the Foothills of Cold War," ContrarianEdge, October 29, 2020