Pavel Durov on the TikTok Sale to U.S. company
t.me
t.me
By prohibiting Chinese companies from operating on US soil, Americans aren't renouncing their values or losing the moral high ground as long as companies from other free countries are allowed to operate. The actions of the US admin are long overdue and Europe must muster up the courage (and incur the costs) of taking a similar position now.
Saying if some countries aren't allowed to freely trade on American soil then none should is a non-sequitur.
The united states is in no way making this a universal policy, and is clearly just doing favoritism.
Another way is that this is a company beholden to our geopolitical adversary that intentionally interfered in our domestic politics.
If you have the former position, which seems to be embraced by the majority of HN users, you can't accept to have Tik Tok, a chinese controlled social network, taking over everyone under 30 in the US.
How would this not be a major threat? As opposed to bot farms on FB/Twitter controlled by foreign actors?
Bot farms are symmetrical - you can use them to support Democrats or Republicans.
TikTok is asymmetrical - it can be used by the owner to support one side or the other, but users of the platform have no influence on this.
Also, if bot farms can sway elections I would either want them to be pliable to more than just Democrats and Republicans.
With TikTok, the primary determinant of what you see in your feed is what they choose to show you - and it could be from anyone in the world, with any degree of separation from you.
Does "that" in this sentence refer to the geopolitical adversary (China), or the company beholden to them (Tik Tok)?
(Linguistically it could be either, but I'm wondering if I missed a story about Tik Tok interfering in domestic politics)
https://www.forbes.com/sites/jemimamcevoy/2020/07/07/tiktok-...
TikTok tends to be apolitical and heavily moderated, so having this go viral was unusual.
Which ones, pray tell?
This is an exaggeration. Anti-China sentiment has been surprisingly uncontroversial and bipartisan. It’s actually one of the only things the American left/right can agree on right now.
The problem is that China has done some specific extremely bad things - Uighurs, Hong Kong; as well as some normal things (competing against US companies) and some things that may be normal but are opaque (how many social networks are beholden to US intelligence services? how many apps snoop the clipboard?). Conflating them all into "China bad" makes it harder to make specific demands that can be widely supported.
Pot, meet kettle.
Russia bought ads on Facebook, a US owned platform.
China has actual state actors in leadership at Tiktok's parent company Bytedance, a Chinese owned company.
In Tiktok's case there is unlimited potential for the Chinese government to influence the platform.
Seems pretty serious to me.
Having sat in meetings with Chinese companies, in China, with their 'party member" representative directing the meeting and talking about the "desires of the state."...........
I really hope Europeans take a closer look at Tesla. Just force them to sell their European business to VW or Daimler or ban them from the market. The horrendous privacy laws in the US should be enough of a justification - those are completely against European values anyway. And even if they aren't, it's not like fact or proof matters anymore. Just accuse and then force them to sell. Maybe that has to happen before other Americans see how ridiculous all of this is.
It's probably related to the forced technology transfers[1], or requiring that chinese operations must be a under a joint venture with a local partner controlling at least 50%
[1] https://www.investopedia.com/forced-technology-transfer-ftt-...
CFIUS [1]. Exon-Florian [2].
The 1977 International Emergency Economic Powers Act [3]. Foreign Investment Risk Review Modernization Act of 2018 [4].
[1] https://en.m.wikipedia.org/wiki/Committee_on_Foreign_Investm...
[2] https://en.m.wikipedia.org/wiki/Exon–Florio_Amendment
[3] https://www.treasury.gov/resource-center/sanctions/Documents...
[4] https://www.ustrademonitor.com/2018/08/foreign-investment-ri...
FIRRMA was drafted specifically to deal with China.
> operating in the US is as risky as operating in China
False equivalence. American laws need to be debated and passed. Party decisions don't. American actions are constrained by the Constitution. Party actions are not. Et cetera.
> if I was tik tok I would sell myself to a European entity
Tik Tok are almost certainly in flagrant violation of GDPR.
Is there a free trade agreement that China infringes?
> Americans aren't renouncing their values or losing the moral high ground as long as companies from other free countries are allowed to operate.
If you support your "values" only on a reciprocal basis, essentially you renounce them. And you certainly lose the moral high ground when you try to get others to adopt these values.
I can't agree with that at all. I hold non-violence as a value, but I'm also going to defend myself if attacked and I don't think that means I renounce my values or lose any moral high ground.
There are plenty of situations where supporting a high-minded value requires reciprocation.
If you did hold absolute non violence as a value, then yes, you would not respond to violence against you with violence even in defense.
Values are not binary.
You just decided to add extra constraints to my argument for no reason.
From what I can see, China does not allow free trade. While the US did.
And because this was so “unfair”, the US decided “fuck it, we don’t want free trade either”.
It won’t gain the US much, and will drastically hurt it going forward, especially considering how much the US has benefited from its open business environment in the past.
Honestly, this is pretty much the definition of childishness. You don’t find something fair so you react to it, instead of actually considering the benefits and downsides of an action before making it.
It’s the immaturity and short sightedness of the American government’s behavior, which is the complete opposite of how the US has acted in the past as far as business is concerned, at least, is what will hurt it the most.
The US didn't do anything like that in fact. You're inventing that premise, broadening what's going on as though it applies to every context when it really applies specifically to China.
As one prominent example, Shopify hasn't required permission to build their $128 billion juggernaut ecommerce platform, riding the US economy like it was a native US company to do it. Neither has Spotify, Trump isn't threatening to ban them.
And you don't need permission to use eg Stripe Atlas to start some giant new tech start-up, riding the US market to great riches. You can just go do it, right now. Just like you could ten years ago. You won't have to pay bribes to anyone to be allowed into the US market, or to be allowed to stay in the US market.
I can freely access eg Baidu and Yandex from the US, despite the context with China and Russia. How does that work the other direction from inside China? Can you freely sign up for Facebook while inside of China?
You can build the next Twitter, KiK, Viber, Snapchat, WhatsApp, Reddit, Imgur, etc. - riding the very comprehensive and strong US free speech protections - without the permission of the US Government. Try that in China and you won't get very far.
The US should treat China as it treats the US, and no better.
TikTok would love that 50/50 JV with a FAANG / with tech transfer instead of sale, if only treatment were proportional and reciprocal.
I know this isn't the forum for it, but I'll just put the FACT out there: Trump has been continually bullied and mocked on TikTok. Trump is an autocratic dictator wannabe sooooo. 2+2 people.
Well no. For many years now, the internet is no longer a truly global network, considering at least how China has been treating foreign-owned properties (Great Firewall).
If you wanted to make a point in favor of a global internet, I guess you could suggest that the US should take the high road and reap the benefits of openness and competition, rather than get down to mudslinging Chinese foreign investors. Not that we should preserve something that in reality has been gone for over a decade now.
Russia's Yandex, Mail.ru, and VKontakte have been banned in Ukraine since 2017 for the same reason[1]:
> Russia also continues to hack into individual cellphones, with Ukrainian Colonel Ivan Pavlenko saying that the Russians had gotten into his phone at least twice in 2018. He also confirmed that Russia has used its ability to tap into cellular networks to send SMS text messages to Ukranian troops.
> These are tactics that the Kremlin has also reportedly used against NATO countries, including the United States, and allows Russia's intelligence services to both scrape potentially useful personal information and possibly insert disinformation onto these devices. The texts can also be psychological warfare tools, with past reports that some were purely insulting or threatening. Using hacked personal information, those threats could include very distressing ones directed at family members or significant others.
I believe, that the Internet of the 2020s cannot be compared to the Internet of the 1980s. It has become a business platform, and any country has the right to ban a foreign company from operating in its territory.
Especially so, if that company is based in a foreign state that is not considered trustworthy. And trust is based on mutually shared values: which the US and China have almost none.
At least to the Communist Party of China this has been clear for decades.
[1] https://www.thedrive.com/the-war-zone/30741/ukrainian-office...
it's called retaliation. Can you explain to me how a social media platform mostly used by teenagers relates to military clashes on a contested border?
And Ukraine isn't exactly the best example. The country is a political and economic basketcase with a lower per capita income than Iraq, and one of the reasons is that for eons terrible policy making has been justified by vaguely pointing at Russia.
You really can't just say the words 'national security' like some magical incantation. There better be an actual evidence-backed reason for clamping down on economic activity. Especially if the group you're clamping down on actually is one of your biggest trading partners, which happens to be the case for both US-China and Ukraine-Russia.
That's bullshit. The US and India are not the only countries that are concerned about the TikTok's data collection practices. The investigations have also been launched by the governments of Australia, Japan, Turkey, Indonesia, Pakistan, and the EU[1].
> You really can't just say the words 'national security' like some magical incantation. There better be an actual evidence-backed reason for clamping down on economic activity. Especially if the group you're clamping down on actually is one of your biggest trading partners, which happens to be the case for both US-China and Ukraine-Russia.
Here you go[2]:
> Russia’s intervention in Ukraine expanded beyond geography and into social networks last year, when Moscow officials tried to collect personal data on Ukrainians who joined social media groups protesting the country’s pro-Russian former president.
> Pavel Durov, founder and chief executive officer of Russia’s largest social media website, VKontakte, claims he refused a demand by the Federal Security Service—the KGB’s successor agency—to turn over details on members of 39 protest groups with VKontakte pages.
[1] https://www.washingtonpost.com/world/2020/08/03/its-not-just...
[2] https://www.bloomberg.com/news/articles/2014-04-17/the-kreml...
If the Chinese government has any ability to control TikTok's recommender algorithm, they could drastically alter U.S. public opinion.
Trump got a taste of something like this (not suggesting that the Chinese gov did this, but it shows what's possible), when tens of thousands of people got tickets to his Tulsa rally because of TikTok videos that encouraged people to get tickets to the rally and then not go. More recently supposedly there has been a trend of ordering free Trump campaign merchandise (yard signs etc), and then making videos burning it in the backyard, etc.
Even if things like this are totally domestic and organic, TikTok merely has to amplify this signal and put these videos in 80 million people's feeds.
The timing of Uber leaving China - Aug 2016 - coincided suspiciously with the Chinese government legalizing ridesharing - announced in July 2016 to kick in November 2016. Isn’t that interesting? Per HBR:
> Under the new regulations, the data collected by Uber would come under the purview of the government. There would be no more subsidies. Market prices would prevail, the regulations state, “except when municipal government officials believe it is necessary to implement government-guided pricing.” According to Xinhua, ride-hailing companies would be urged to merge with taxi companies. (Many of those also happen to be owned by the local governments.) Uber would have to get both provincial and national regulatory approval for its activities anywhere in China. Online and offline services would be regulated separately.
> Moreover, foreign companies like Uber would be subject to even more regulation than their competitors.
This has always been the MO of Chinese government: blackmail though selective enforcement of broad-stroke laws. They tell you to leave without having to mouth it.
[1] https://en.wikipedia.org/wiki/Operation_Aurora [2] https://hbr.org/2016/08/the-real-reason-uber-is-giving-up-in...
Uber was sponsored by Baidu in China. Baidu is much more resources than any competition / incumbents at the time. Your article suggest regulations killed the industry for everyone, i.e not biased against Uber (and Baidu).
>The country’s first nationwide regulation of the industry was truly bad news for Uber and, if followed to the letter, bad news for the entire industry.
...
>In selling its China business to Didi Chuxing, Uber is getting out of its China operations at the right time and at a reasonable price.
Of course shareholders would squeal like stuck pigs about efficiency, economies of scale, etc... but that's to be expected and, depending on your perspective, might even be part of the fun.
2. Microsoft and the NSA have had a very cozy relationship for a long time
3. Microsoft is bidding to buy TikTok's US operations.
Yeah, I must be crazy to think something SIGINT-wise is afoot.
[1]Didn't the LinkedIn app also get busted for reading the content of the clipboard on iOS?
How is it useful to the NSA? I get how tiktok would be useful for propaganda purposes, but it doesn't seem useful for actual intelligence gathering. Are terrorists going to upload short video clips of themselves planning a bombing? Do criminals do their business transactions over tiktok?
The aim IMHO rather is to have an avenue to prevent Russian and Chinese propaganda from spreading.
He is 200% right: this isn't an isolated event, it is the end of an era.
There was a time, starting in the Clinton administration when conservatives and liberals all over the world wanted open borders markets (with lots of trade agreements and China entering the WTO), democracy (in Latin America, Eastern Europe and Asia), migrants and open internet across borders.
Then, little by little people soured on all of that openness and globalization. Now many of the places that sought democracy are returning to authoritarian rulers (e.g: Hungary, Turkey, Russia, Brazil, China). Protectionism and closed borders are on the rise (Trump's wall, tariffs and withdraw from Trans Pacific Partnership, Brexit, EU crackdown on immigrants and staled new trade deals).
Tech will be the next victim. All over the world governments will begin restricting foreign companies, for economic, ethical, military or authoritarian reasons. China, Russia, Turkey and Iran always did it. Now the EU is getting sour on Google, Apple and Amazon. Trump is in full war against Huawei and now takes on TikTok.
Businesses will need to find ways to navigate these hostilities. Those that aren't cautious will pay an heavy price.
How do businesses handle that? I see two ways. Microsoft and IBM are two veterans on navigating regulations. Their secret has been a careful mix of compliance and heavy and expensive lobbying. Google seems to be learning this lesson. It seems to work. Huawei will need to learn it with them.
Another way would be to make tech that is immune to regulation either by design (Bitcoin, Signal) or by it's scale and how deeply is supported by local communities (WhatsApp). I don't believe this is effective in the long run. China, Russia and Turkey have shown that they can simply block these technologies when they become a nuisance.
Wielding entity list against Huawei, IC industry talking about "deamericanizing", Barr lowkey suggesting getting US company to acquire controlling share in SE or Nokia to compete in 5G (Cisco said no), TSMC coerced into US plant, Google + Apple controlling contact tracing standards during a pandemic while rebuffing nation state request for more fine grain collection, an now forced sale of TikTok. Nvidia / ARM purchase in conjunction with reshoring IC production and containing Chinese IC industry smells like Barr too. Every line that could have been crossed has already been crossed. US done everything it accused China would do, which China has yet to. Even prior, many countries were moving towards data sovereignty and local warehousing laws. Not
But yeah, the situation is sad to say at least. I wholly understand US blocking Chinese social media company to reciprocate how China (and others) have done in their markets. Yet the current US administration has not necessarily framed it in such light, rather just claimed ambiguous spying claims which are a bit of blanket statement.
Is it actually the case here or is it just a distraction or a negotiation tactic, hard to say. Certainly democratic countries should not stand idle when authoritarian governments attempt to extend their influence and spying capabilities especially within their own borders, even when it happens indirectly through companies. Sometimes playing nice and keeping status quo won't get you anywhere. But in this case the play seems rather dirty coming from a nation as devout of a believer in the free trade as US.
I guess at the core of this whole matter, is the imbalance in how the profits from internet, possibly the greatest invention since electricity and combustion engine, are distributed to the world. The way it's happening now shares some similarities to the imperialism age, where there were those who only produced goods (now consumers of internet services) to the richer countries without getting much in return. Similarly Google and Facebook might control the whole search and social media market in a country with local competitors having no chance of competing, without paying any taxes on the profits or contributing employment.
So by not wanting to become just another colony of the foreign technology companies, I guess authoritarian government can exploit that to legitimize their banning of Google and Facebook to help establish their own. But which in reality serves a bigger purpose as part of their security apparatus to spy and censorship their own people.
Of course I'm now completely omitting the angle that Google and Facebook could also be considered as part of US's spying apparatus, but I'll assume some good will here.
I’ve wondered this, too. I think TikTok has a strong argument for why the Administration shouldn’t/can’t be doing what they’re doing in forcing a sale.
But, of course, TikTok’s whole argument kind of falls apart if they’ve actually done what the President has accused them of doing. Purely speculation but I suspect they might have a pretty strong incentive not to take this to a judge.
Pity, Telegram was so usable app.
I don't understand the relation from ^ with the rest of his take.
He is saying the US should ban Tik Tok instead of forcing a sale of the US operation to a US company?
But of course they are not really concerned about Chinese protectionism, they do it too just as much, only a bit differently. Control over mass communications platforms popular in the country is what it's all about, just as it is for China, Russia and other openly authoritarian countries, because this is what they deem important to protect power.
That's probably not going to be an issue unless US starts banning apps for no apparent reason (eg. forcing spotify to sell their American operations). For now the administration (regardless of their actual motives) can plausibly say that it was done in retaliation, which makes it look more acceptable to third parties.
If you owned a coffee chain across the country and some counties police took extortion money to "protect" your assets or forced you to "sell" your operations to local goons, would any other business observing this ever open more businesses in those mafioso counties?
For a big country, it isn't so bad - most people's needs can be fulfilled mostly with local services.
TikTok is pretty mild as a propaganda/influence delivery mechanism when you have fully operating mills like RT and OAN operating the US with impunity.
If someone cared about "Chinese Communist Party controlled businesses", action would be taken to address the craven and obvious money laundering of commercial real estate. That's a far more subtle and dangerous threat, as people who control valuable real estate have more leverage to influence government on all levels.
Basically everyone is waiting for November. If Trump goes off, stuff will normalize again, and if the GOP gets flattened long-term confidence will rise. The really interesting scenario is Trump either winning outright, delaying the vote or refusing to leave office. At that point it's game over for the US on a global stage.
This is my biggest concern. I'm not sure this country can ever be a leader in anything with 4 more years of this low IQ leadership.
All the corruption news that we used to hear about third world countries are all prefixed with US now.
Not only is that ridiculous on its face because it's the government that's forcing the sale in the first place, it's also a fairly shady real estate practise, so we know where he got the idea. Imagine thinking ten years ago that the US government would force a private company to sell all their assets and then pay the government for that 'privilege'.
Also note that Trump is a TV personality, he wants to look like he's running the US like a business like he promised on the campaign trail. So he's making a lot of noise about the key money thing. He could just have done it silently but he wants people to admire how tough he is, and reelect him.
Nobody obviously because if the government gets a monetary incentive to ban foreign companies and sell them to the US government you encourage the government to act like some sort of mafia landlord, destroying the rule of law.
That I'm being downvoted for this simply fact shows how far gone people even here are, Jesus Christ.
I am absolutely supportive of all actions taken to promote US companies, particularly against countries (including China) who have taken repeated drastic steps to promote home grown companies.
I have issues on how it is being handled by President Trump.
It's like the run up to the Iraq war all over again.
Seriously, people, you can't justify something by pointing out how other people have also done something wrong. You can't justify something by positing a principle that never existed before.
This whole story sounds like out of some dystopian bizarro fiction novel. So lip syncing teen girls are a national security risk now? What are you going to do when something real happens then?
This could potentially be used to stir the political discourse of a country towards one outcome or create unrest by putting groups of citizen against each others, etc. All done by controlling what users see.
This is the argument for banning Hollywood movies in every country that isn't the US, because it gives "illegitimate influence to foreign actors" or something along these lines.
It's completely antithetical to Western values.
American (online or not) media, advertising and tech companies have been vastly successful all over the world, and that has - rightfully, to a large degree - been attributed to the quality of their products.
Now there's a successful tech company from China, and you're saying that means they must be banned or expropriated because they could influence public opinion? That's peak hypocrisy.
Yes, China has done similar things. But that's an unfree, communist country! Stooping to their lows makes you wrong, not right.
The other comments here pointing to how the EU could act similarly towards FAANG or Tesla are spot on. It definitely shouldn't in my opinion, but if it did I guarantee you you'd hear the same gleeful "good for you" rhetoric from this side of the Atlantic.
It would make a few people feel all fuzzy and energized for a while, but in the long term it would simply destroy the free, open exchange of goods, people and ideas that has done so much for us and that's dear to so many of us. Thankfully, EU leaders aren't (yet) that unwise apparently.