If TikTok's Chinese owners don't sell their stakes, the Biden administration threatened to ban it from the US.

The move is driven by fears that US user data held by the company could be passed on to China's government. It also comes amid a global backlash to TikTok over concerns about the potential for Chinese spying, with countries including the UK, Canada, and Australia recently banning the app from government phones.

Although the US has previously banned TikTok from federal devices, this is the first time Biden's administration has threatened a nationwide ban.

Any ban in the USA would be met with significant legal obstacles. Donald Trump, Biden's predecessor tried to ban TikTok in 2020 but was stopped by the courts.

Brooke Oberwetter, a TikTok spokesperson, said to Reuters that TikTok had just heard from the US Treasury-led Committee on Foreign Investment in the United States (CFIUS). The committee demanded that Chinese owners of the app sell shares and threatened to ban the app.

The move comes as TikTok’s CEO, Shou Zi Chew, is due to appear before the US Congress next week.

TikTok and CFIUS have been negotiating for more than two years on data security requirements. TikTok said it has spent more than $1.5bn on rigorous data security efforts and rejects spying allegations.

TikTok said on Wednesday, March 15, that “the best way to address concerns about national security is with the transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification”.

Meanwhile, China has accused the US of spreading disinformation and suppressing TikTok.

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