ManiIn recent years, Tik Tok has become one of the most widely used social media platforms globally, with over 1 billion active users as of 2022. What is noteworthy more than TikTok under scrutiny, that it was developed by a Chinese company, which has managed to create a product that has achieved widespread success in western markets. This is unlike South Korea or Japan who have created multi-billion-dollar brands and extended their reach into western markets; it is the first time a company from a competing and at times adversarial power is coming into play.
However, despite its success, Tik Tok has faced a significant amount of scrutiny in western countries, with some countries like France and the United States even banning the app in government offices and threatening to place an outright ban altogether. The main concern that has been raised is the issue of data and information privacy, with many alleging that the app is collecting user data and sharing it with the Chinese government.
TikTok under scrutiny: TikTok CEO testifying at the US Congress.
While data and information privacy is undoubtedly important, it is essential to note that there have been significant data breaches in the past that did not receive the same level of scrutiny. For example, the Equifax breach of 2017 exposed the personal data including social security numbers, and vital financial records of over 143 million Americans, making it one of the largest data breaches in history. Similarly, Facebook has also had several data breaches, including one in 2018 that affected over 50 million users. The LinkedIn breach of 2012 was also significant, with hackers stealing the login credentials of over 167 million users.
Therefore, it appears that data privacy is not the primary concern driving the scrutiny of Tik Tok. Instead, it seems to be a concern about a competing power developing a reach to influence people’s sentiments, much like CNN, Hollywood, and the BBC have been doing for decades. The fear is that China could use Tik Tok to influence public opinion in western countries, much like the Western media has been doing in other parts of the world and this is why you find TikTok under scrutiny
This is a Coca-Cola and McDonalds arriving in the Soviet Union type of moment. In the 1980s, the introduction of western consumer products like Coke and McDonald’s influenced the USSR culture, resulting in the fall of the Berlin Wall. Therefore, the fear is that Tik Tok could similarly have a significant impact on western culture and society.
However, it is important to note that the reason we are in this place is due to being casual about protecting information that matters and by being a consumption economy vs an innovation and manufacturing economy in the first place. The West has outsourced most of its work outside their geographic boundaries to other countries, resulting in a significant trade imbalance and a gradual brain drain. As a result, China has become a major player in the global economy and is now in a position to dictate terms.
The times are changing, and as Ray Dalio has said, we are seeing a changing world order. In his words, “we are in a world now where there is competition between countries that is comparable to a competition between companies. And it’s not just a competition for market share and profits, it’s a competition for power.” To win this competition, Dalio proposes that the United States should focus on its own economic and political reforms, rather than trying to contain or confront China.
Therefore, the solution to the Tik Tok scrutiny is not to ban the app altogether or to impose restrictions on it. Instead, the solution is to be truly better in protecting our intellectual property, building self-reliance in innovation and manufacturing, and producing a better and cheaper product than others.
Most importantly, lets worry less about TikTok under scrutiny, and worry about that we need to bring balance to our consumption vs innovation economy to remain competitive in the global market.
