CEO of TikTok claims some U.S. data is still accessible to ByteDance-China employees

Shou Zi Chew, the CEO of TikTok, told U.S. lawmakers last week that its parent company ByteDance may still have access to a portion of TikTok's U.S. data. However, this will not be the case once the company's risk mitigation plan, Project Texas, is finished.

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The discussion is significant because it reveals the root of American officials' concerns about TikTok's ownership. It illustrates how challenging and time-consuming it can be to separate the app from its Chinese parent company.

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Legislators and intelligence officials fear U.S. user data could slip into Chinese hands via ByteDance. This is due to Chinese law, which, according to Trade Algo, permits the government to get inside information from businesses established there. This is for alleged national security needs.

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Rep. Bob Latta, R-Ohio, questioned Chew during his eagerly awaited hearing before the House Energy and Commerce Committee. He inquired whether any ByteDance employees in China could access US data.

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“After Project Texas is done, the answer is no,” Chew added. The need to delete some data is still present today.

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Chew later denied sharing US data with the Chinese Communist Party during a hearing debate with Rep. Tim Walberg, R-Mich., claiming TikTok is a "private enterprise" that, like many others, depends on a "global workforce."

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A TikTok representative said in a statement that there was "no truth" to the allegation last week. This was in response to a request for comment regarding the assertion made in a Wall Street Journal article that TikTok is a Chinese espionage operation.

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At the time, the spokesperson further clarified, "Since October 2022, all new U.S. user data has been exclusively stored in the Oracle Cloud Environment, with protected data fully out of reach of any foreign government. Only American companies control that data. Data Security is a TikTok subsidiary run and headquartered in America to defend American national security interests. It safeguards user data from Americans and prevents system outside interference.

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Project Texas is already underway, but there are still many steps to take before it is finished, TikTok said on Thursday. Included in that is the process of erasing data from TikTok's servers in Virginia and Singapore, which started last week. Employees of ByteDance in China might still be able to access the data stored on such servers for the time being.

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These staff won't have access to U.S. user data when TikTok says data has been removed. Additionally, Oracle servers are already used to keep U.S. user data generated after October 2022 outside of that access point.