What Does the Deal Mean for US Businesses?
With the deal still freshly done, it’s difficult to say concretely how US businesses will be affected, but we can speculate based on the information the White House has released so far.
An ‘Asia-based investor of Bytedance’ has told The Financial Times that the new version of TikTok would “use at least part of the Chinese algorithm but train it in the US on American user data”. That being said, businesses could still see some changes to TikTok’s algorithm that affects their visibility on the app, potentially making it harder to be recognized in certain markets.
On the other hand, the move could also benefit US based-businesses, as they may be favored more highly within a US-built algorithm compared to a Chinese-built one. What’s most important is that it seems TikTok is here to stay, and for what this will mean specifically for US businesses, we’ll have to wait and see.
