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ByteDance Strengthens Control Over TikTok Operations in the US
ByteDance, the Beijing-based owner of TikTok, has significantly increased its influence over its US operations in the last two years, even amidst mounting pressure in Washington to ban the popular short-video app. The US government recently passed legislation with the intention of compelling TikTok to separate from its parent company or else face a nationwide ban. However, disentangling the viral video platform from its $268 billion parent company poses a substantial challenge.
Deepening Integration Between ByteDance and TikTok
According to over two dozen current and former employees, TikTok has become more intricately linked with ByteDance as disputes over ownership of the app have intensified. Employees revealed that ByteDance personnel, including high-ranking managers, had been reassigned to TikTok. Additionally, employees in the US who were fluent in Mandarin were given preference due to their ability to communicate with their Chinese colleagues. Restructuring efforts within the company have also targeted US-based employees who did not meet stringent performance criteria.
Former US ads policy manager, Joël Carter, who departed in August 2023, remarked, “There’s this sort of veneer or facade that these two companies are separate. Really, they’re one and the same.” Current and former employees disclosed that the number of Chinese staff within TikTok has been on the rise in the past few years. ByteDance has been transferring employees from China to various global offices, including those in the US. Notably, Qing Lan was moved from Douyin, ByteDance’s Chinese counterpart to TikTok, where they now oversee the small and medium-sized business advertising division in the US.
The sources who shared this information did so under the condition of anonymity, out of fear of reprisals from the company. ByteDance has the authority to reclaim bonuses and stock awards if employees violate non-disparagement agreements, as confirmed by documents reviewed by the FT.
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