TikTok CEO Testifies in House Hearing: We Are Building 'Firewall' Around U.S. Data The CEO of TikTok, Singapore-born Shou Chew, testified before Congress for the first time on Wednesday. He promised to safeguard U.S. data.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

CSPAN
CEO of TikTok, Singapore-born Shou Chew, testified before Congress on Wednesday.

TikTok is facing a raft of discontent in Washington — and Wednesday's hearing was the first time the company's CEO, Shou Chew, is addressing legislators publicly.

"There are more than 150 million Americans who love our platform," Chew said. "We know we have a responsibility to protect them."

Chew testified Wednesday before the House Energy and Commerce Committee after years of government concern over its ownership and data management. Soon after TikTok arrived on U.S. shores, then-President Donald Trump attempted to have it banned because of parent company ByteDance China-based ownership. More recently, Congress has made multiple, bipartisan gestures at banning the app. Over thirty states have banned it on government devices.

The hearing was slated to focus on "TikTok's consumer privacy and data security practices, the platforms' impact on kids, and its relationship with the Chinese Communist Party," per a press release.

Related: Why Is the U.S. Threatening to Ban TikTok? The Government Wants Chinese Owners to Sell Stakes

In his opening statement, Chew outlined commitments that he said the company could make to U.S. users: safeguarding teenagers, continuing to "firewall" U.S. data "from unauthorized foreign access," not allowing the company's content moderation or algorithm to be manipulated by a government, and not letting outside parties view its practices to ensure compliance.

This "goes further, by the way, than what any other company in our industry [has] done," as far as privacy and transparency, Chew added.

TikTok became available in the U.S. in 2018. Chew told legislators Thursday that the company employs about 7,000 people in the U.S. He added that nearly five million U.S. businesses, mostly small, are on the platform.

TikTok users spend an average of 93 minutes a day on the app, per data from analytics firm, Sensor Tower, according to the New York Times.

Related: TikTok Is Now Banned On All U.S. House of Representatives-Issued Devices, Effective Immediately

Representatives grilled the CEO about issues from content related to mental health and eating disorders to TikTok's relationship with parent company ByteDance and the Chinese government. Questions were also asked about TikTok's financial details, such as Chew's salary, which he declined to answer.

Last week, the Biden Administration told TikTok it would need to divest from ownership in China or face a possible ban, the company said. China on Thursday voiced its opposition to such a move.

The main concern is a law in China that forces companies to hand over user data to the government, but others are that the app could manipulate U.S. users.

TikTok offered a program called "Project Texas" in the way of national security assurances, which involves continuing to move its data on U.S. users to Oracle services by the end of the year. As a result, the company would not be required to share data with Beijing. Oracle is a U.S. company headquartered in Austin.

Chew further said in response to questions that after Project Texas' was complete, no ByteDance employee would be able to access U.S. data. One representative, Anna Eshoo (D-CA) said she found that "preposterous."

Chew also said in response to questions that he has seen "no evidence" that the Chinese government has viewed U.S. data.

According to leaked audio obtained by BuzzFeed News and reported in September 2021, one employee said in a TikTok meeting that "everything is seen in China."

Chew also seemed to hint at Congress's lack of success in passing comprehensive privacy legislation to regulate the industry at large in his opening statement.

"We believe what's needed are clear, transparent rules that apply broadly to all tech companies," he said in his opening statement.

House Representative Cathy McMorris Rodgers (R-WA), Chair of the House Energy and Commerce Committee, and ranking member Congressman Frank Pallone, Jr. (D-NJ) expressed strong sentiments about the company's connections to the government in China and about big tech in general.

"Your platform should be banned," Rodgers told Chew.

The hearing was still ongoing as of publication time.

Wavy Line
Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Business News

California Woman Arrested For $60 Million Postal Service Scam

Lijuan "Angela" Chen faces two charges that each carry a maximum sentence of five years in prison.

Real Estate

Few Industries Are Better for First-Time Investors Than Real Estate. Here Are 4 Proven Ways to Make a Profit.

It's hard to overlook real estate's obvious advantages when it comes to investing. If you're venturing into this investment for the first time, here are some strategies to be the smartest investor that you can be.

Science & Technology

Is AI Killing Our Work Ethic and Purpose? A Balanced Perspective on Harnessing the Full Potential of Generative AI

Despite its popularity, human expertise and judgment remain essential in leveraging the complete potential of generative AI.

Business News

A Wegmans Employee Allegedly Stole Over $500,000 from the Company

Alicia Torres pleaded guilty to crimes carried out over nine years while working at Wegmans in Webster, New York.

Starting a Business

Ask Marc | Free Business Advice Session with the Co-Founder of Netflix

Get free business advice during our next Ask Marc, live Q&A, on 6/21/23 at 3 p.m. EDT. You don't want to miss it—send in your questions now.