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Forcing a foreign business to "sell or close" is an insult to the rule of law.


> Forcing a foreign business to "sell or close" is an insult to the rule of law

These powers are precedented—-this is how antitrust law works. The U.S. has had similar procedures in CFIUS since 1975 [1][2], which is likely how U.S. would enforce this decision.

Keep in mind, it’s not sell or close. It’s an order to unwind the Musical.ly acquisition [3] or face sanctions.

[1] https://en.m.wikipedia.org/wiki/Committee_on_Foreign_Investm...

[2] https://en.m.wikipedia.org/wiki/Exon–Florio_Amendment

[3] https://hans.vc/bytedance-musical-ly-merger/


Since when could the President singlehandedly do it? Also, this has nothing to do with anti trust. How is TikTok a monopoly?


> Since when could the President singlehandedly do it?

Since 1988, when the Congress passed a law saying “all foreign investments that might affect national security may be reviewed and if deemed to pose a threat to security, the President of the United States may block the investment” [1].

[1] https://en.m.wikipedia.org/wiki/Exon–Florio_Amendment


A little bit late to block the investment. Musical.ly was sold 2017.


Grindr was sold to a Chinese company in 2016 (without submitting the transaction for CFIUS review), and then CFIUS intervened in 2019. It's not late at all.

Similarly, ByteDance had the choice to seek CFIUS review and approval in 2017 before they closed the Musical.ly deal, but chose not to. So CFIUS is intervening now.


That seems like a sale ripe for exploitation. China would have been able to harvest data on closeted individuals and leverage them. Completely agree with blocking this sale.


It’s only late constitutionally. This will go to the Supreme Court.


> Musical.ly was sold 2017

CFIUS has a 90-day timeline, but that’s a creature of executive action. Exon-Florio requires no similar timeline.


Congress has been making noise about forcing Google to "unwind" the DoubleClick acquisition, which was in 2007.


“President Reagan delegated the review process to the Committee on Foreign Investment in the United States.“


> President Reagan delegated the review process to the Committee on Foreign Investment in the United States

Delegating a power doesn’t remove one of that power. And CFIUS pre-dates Exon-Flores, so the Congress giving the President, not CFIUS, these powers is relevant.

We can have a discussion as to whether we like or dislike this action. (I am not a fan.) But suggesting it’s unprecedented or a breakdown of the rule of law is hyperbolic.


Congress gave that power to the president. Congress can take the power back if it wishes but it won't, not even with their showboating faux hatred for Trump. Congress hates making decisions like this one so they punt to the Executive Branch. This is not a unique situation. Over the years Congress has given away lots of its power to the president, which remains even when there is a change in office.

Congress can change this any time it wants.


[flagged]


> broad powers and laws to achieve political ends, that have no sense of justice or equity

This is the central thesis of the US Federal government. I don't know why people are under any other impression.


Not if this is the only way to protect its citizens. Not saying it's the case here but forcing a company to sale it's business to a local entity in order to proceed offering it on a local market isn't unheard of and can make sense.


People sharing funny videos on TikTok is not threatening your personal safety. Governments accessing DMs, or whatever data you have in TikTok isn’t a threat to your personal safety.

The notion that TikTok is a threat to national security is ridiculous. Truly, “national security” has lost its meaning.


TikTok collects a lot of user data:

Geolocation data, including: longitude, latitude, and time zone

Device information, including: Android ID, International Mobile Equipment Identity (IMEI), Address Book Access, Device carrier region, Device region, Device type, Device OS version, Device language, Device connection type, and Mobile network code

App information, including: App name

https://www.proofpoint.com/au/corporate-blog/post/understand...


Should american apps be therefore banned by the other countries? I'm talking about american apps as the issue here is china vs usa, otherwise any other country that produces apps is probably guilty of the same collection.


1) Most non-Chinese apps are already banned in China.

2) The world trusts US companies because unlike China the US is not a dictatorship, has a functioning, independent judiciary and generally abides by international law. So there is a far greater level of trust there because there are legal mechanisms to prevent breaches.


This seems to ignore the Snowden revelations. I don't think most of the world trusts US companies qualitatively more than they trust Chinese companies for these kinds of apps.

Also, the discussion was about national security and you are giving different arguments here. How is this related to national security?


Is this really true? You do not think China's actions in Hong Kong has put more doubts into China's policy on human rights compared to United States?

If you tell me you believe they are equal, I'll take your word for it. While the United States has plenty of flaws, I think they are still far more trusted when it comes to human rights.


“The world trusts US companies” is definitely not true in the sense we are talking about.

Legal mechanisms exist everywhere and can be broken if not by selective enforcement but also by the voters.


It takes years and significant effort to overturn laws in most countries.

In China they can do it anytime Xi Jinping snaps his fingers.

That's why countries do not trust China.


Then isn't it strange that TikTok and Huawei have issues in US (where laws "cannot be overturned") but not in China?


You discount how easily and quickly it is for countries (e.g. the US) to go full retard, when the evidence is literally right in your face. That's what a blind ideologue looks like, folks.


Maybe an unpopular point of view, but from where I'm standing, it's sure starting to look scarily like one.


1) it doesn’t matter what other countries without our constitutional protections do.


> The world trusts US companies because unlike China the US is not a dictatorship, has a functioning, independent judiciary and generally abides by international law.

I feel like this always get short shrift in whataboutism discussions.

In China, everything is by law in service and subordinate to the Party.

In the US, not.

That seems like a pretty big difference.


None of that information even remotely threatens national security outside of the military.

If the military is doing things that civilians commonly do then maybe, you know, they should stop that.


Might want to read up on what happened with Strava:

https://www.bbc.com/news/technology-42853072

And the military has already acknowledged that they have a problem with the rampant use of private devices. So any app that harvests a lot of real-time location data can be a problem.

Also if I was the Chinese government I absolutely would be analysing audio/video and capturing contacts for any phones at known military GPS locations.


First of all, you didn’t mention anything about the military in your first post. So maybe you should read up on how to make a point comprehensively before telling somebody else to read up on something. The information that you mentioned, by itself, does not affect national security. And obviously, any sort of information that one can gather on the military is helpful to the enemy. That’s why they don’t do all sorts of things that civilians commonly do.

Anyway, maybe ban the military from installing apps or using civilian phones if it’s a problem??

That article you linked to was not even about TikTock it was about some other app. So removing TikTock is not going to fix the problem.


Sure. And TikTok isn’t going to be used by China to send commandos into the US to kill you. China isn’t going to harm you with TikTok. US national security is not threatened by Americans using TikTok.


I'm glad a few people have common sense. Anybody who's even used TikTok for 1min could figure that out. There definitely brain washed racist fools that give any credence serial liar like Trump


> Not if this is the only way to protect its citizens.

There are other ways, like enacting laws mandating data storage be in the US.


If China-based engineers have access to TikTok's US-based servers, they can still hand over data to the CCP (or be forced to do so).

The only way out is to move engineering, SRE, and testing out of China and hard-fork the codebase.


> If China-based engineers have access to TikTok's US-based servers, they can still hand over data to the CCP (or be forced to do so).

1. That is illegal.

2. Theoretically this also currently applies to Google, Microsoft, Google (any company which has devs in China) and is a solved problem. Almost all people don't have physical access to data, and those who do need to go through access reviews to do anything.


Quite the contrary: it’s illegal to not share data with government if requested:

> Two pieces of legislation are of particular concern to governments — the 2017 National Intelligence Law and the 2014 Counter-Espionage Law. Article 7 of the first law states that "any organization or citizen shall support, assist and cooperate with the state intelligence work in accordance with the law," adding that the the state "protects" any individual and organization that aids it.

Source: https://www.cnbc.com/2019/03/05/huawei-would-have-to-give-da...


> Quite the contrary: it’s illegal to not share data with government if requested:

I see. That's a fair point.


This is not a "sell or close" it's a "cut ties with a foreign government or stop operating here". TikTok can continue operating, just not in the US.


> cut ties with a foreign government or stop operating here

How is it possible for someone to prove that they have no foreign government ties?

Are there any evidence backing the "foreign government tie"?


Proving it might be hard.

But a first step would be to get rid of its internal committee of the Chinese Communist Party. And to stop making joint venture with government agencies.

To put it in other words, if there was a dedicated spot for the US secretary of defence on the board of Google, how fast do you think other countries would take some actions against Google ?


> stop making joint venture with government agencies.

Good point, I don't know they have JVs with government agencies before, had to do some research on this.

> get rid of its internal committee of the Chinese Communist Party

This is hard, if not impossible, if you meant "党委" ("party committee") or "党支部" ("party branch"), because CCP demands any organization with more than 3 party members SHOULD have one. ("should" should be interpreted roughly as the same word in RFC Requirement Levels) And just like they usually have no problem if people chose to deny joining the party but may hassle you forever if you quit, if you try to shutdown an existing "committee" it would be seen as hostile.

That being said, most of the mid-to-large-sized startups are actively ignoring these requirements until being forced, because apparently even if you are required to do so, you have to go through a hairy application process. And the "committee" in most corps (including mega corps) are essentially an empty shell, a symbolic thing to make CCP happy, so corps usually have no motivation to change the status quo.

Yet CCP do extremely care about these symbolic stuff, it is even forcing foreign companies to do this, IIRC Disney agreed to do so.


They aren't forcing it to sell or close. If the US bans TikTok, TikTok will still exist in other countries.


How does this compare to forced technology transfers of a companies IP?


There hasn’t been a rule of law in the US for four years. Congress and the judiciary have both been rubber stamping everything the President does.

Yet and still this is the same government that for some strange reason many on HN trust to “regulate tech”.


> Congress and the judiciary have both been rubber stamping everything the President does

This is patently false—the U.S. has been losing court cases left and right [1].

[1] https://www.theatlantic.com/ideas/archive/2020/06/why-trump-...


Have you ever had to take a case to court? What percentage of your annual income did that cost? How long did it take to work its way through the system? Was there a finding of wrongdoing or an out-of-court settlement? Would you do that again? Would you want to do that for every interaction you have with the government?



This is an opinion piece.


Are you saying the facts that it presents aren’t true?


It's behind a paywall so I don't know but what I do know is that I don't take any opinion piece as factual. Ever.


This is one of those shortcuts we use to cut out complexity, but in process, we create blind spots for ourselves.

It is not reasonable to expect things to either have opinions or not. An adult should have the sophistication to read something and understand what is opinion and what is fact. I get that many adults these days apparently lack that ability, but that doesn't excuse it.


I use it as a shortcut because I got tired of reading BS using the skills you describe. Now I don't read the opinion section at all. Once bitten twice shy.


Sure, but this is impossible to escape. Even if you're looking at a dry set of facts, there was editorial decisions made regarding what to put on that list and what to leave off. There is literally nothing you can read where you can escape the opinions of others.


No disagreement there



No argument here on that topic.


One case, and the defiance is four days old. The injured will be able to get equity and injunctions in court.

Not a valid argument for equivalence with Xi’s regime.


From who? Judges in the same party with lifetime appointments? Is Congress going to condemn it?


> Judges in the same party with lifetime appointments?

Gorsuch recently ruled against Trump on gay rights [1]. As have several Bush appointees on other matters.

Party isn’t a perfect prism for predicting court opinions.

[1] https://www.nytimes.com/2020/06/15/us/politics/gorsuch-supre...


You're really not paying attention if you think this behavior is unique to Trump


Well since he is the President now, that’s what kind of matters.


It matters that we recognize patterns of unaccountability and lazy leadership. The issues with the presidency are much larger than Trump and if we ignore that it will keep happening.


Not if China don't reciprocate the openness of the market (which they don't). Only fools will let them steamroll like that. I'm no Trump fan but this should have happened decades ago.


Rule of law is not conditional on reciprocity.


And vice versa. Rule of law is whatever the law makers decide the law will be. If they decide it is conditional on reciprocity then it is.


Rule of law is very important, but part of the problem is the "law" is pretty expansive with the powers it gives to the President. So I don't necessarily think there is a "rule of law" problem in this instance, but instead a problem with the extent of powers given to the federal government in general and to the President specifically. Disclaimer: I haven't read a good legal analysis of Trump's actions as of yet.

This is a long standing problem with the size, scope, and complexity of our federal government.

One of the things I do "enjoy" about Trump is how his actions gets everyone to argue for a less powerful federal government. It would be nice if these structural arguments weren't dependent on who was in the White House, but it is nice to hear them anyway.


Amen


And working with a country which enforces that practice for over 40 years is not? (China if you didn't notice).

This is the only way to truly fight back to their own anti-competitive practices. Either that, or outright banning them from doing business until they change their own laws, and honestly I much prefer the second option, even though I can tolerate the current solution proposed by Trump.


So you fight back by becoming more like China?


I know where you’re going with this, but let’s all reflect on how China is currently winning.


That'll show 'em!


What Trump is doing is completely within the law otherwise TikTok and its investors would simply file a lawsuit.

And every day governments around the world block mergers and acquisitions on competition grounds and block companies from being involved in sensitive projects e.g. Huawei.


Yeah, like they would a expect fair trial.


It's not a criminal proceeding. These are arbitrary powers granted to the President by Congress. If you want to change that, lobby your Congressperson to repeal the 1988 law mentioned elsewhere in this thread.


The US government just took a large step towards becoming like China's today, at least in terms of how it oversees its technology industry.




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