TikTok’s US ban: A cultural shift and economic shockwave

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In the late night of January 19, popular video app TikTok goes dark in the United States hours before a federal ban took effect on Sunday, January 20. Users were greeted with a message “Sorry, TikTok isn’t available right now.”  TikTok’s sister apps Lemon8 and popular video-editing app CapCut were also unavailable.

TikTok, Lemon8, and CapCut are owned by Chinese internet technology company ByteDance. Apple and Google have removed TikTok and all ByteDance-owned apps from their respective online stores in the region.

For others, the ban may just be a blip on the radar, but it signifies a profound shift in the cultural landscape, as it threatens to dismantle a platform that has become integral to self-expression and community building for over 170 million users in the US. This action raises serious concerns about national security and poses a significant risk to free speech, particularly for marginalized voices that have found a public forum on the app, potentially stifling grassroots activism and cultural exchange.

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The ban explained

The law, which was overwhelmingly passed by Congress last year and signed by President Biden, calls for TikTok’s parent company, ByteDance, to sell or divest its ownership or otherwise face a ban – an outcome that has now occurred. The US Supreme Court upheld this law on January 17, 202, 5dismissing TikTok’s First Amendment challenge regarding freedom of speech. The court recognized the app’s significant role for millions of American users while prioritizing national security concerns over data privacy and potential foreign influence. This ruling enables enforcement of the ban, leading to TikTok’s removal from app stores and web hosting services due to ByteDance’s non-compliance with divestiture requirements.

Who proposed the ban?

The social network aced negative scrutiny from President Donald Trump back in 2020. His successor, Joe Biden, echoed these sentiments by signing the “No TikTok on Government Devices Act” at the end of 2022, which called for ByteDance to sell to a US firm or face an outright ban.

Subsequently, in April 2024, the USyeah everyday House of Representatives passed the bipartisan “Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA),” explicitly pressuring ByteDance to sell the platform by January 19, 2025. This law garnered support from both Democratic and Republican lawmakers concerned about potential access to sensitive American user data by the Chinese government or its use for disinformation campaigns. As a result of this legislation, tech giants like Apple and Google are prohibited from offering TikTok in their app stores starting January 19, with substantial penalties for non-compliance.

The 75 -day pause

Curiously, Trump has reversed his position since being elected president for a second time. On January 20, he signed an executive order pausing enforcement of the federal ban on TikTok for 75 days. This directive halts potential penalties against TikTok and its affiliates while emphasizing his intention to negotiate a solution that balances national security concerns with the app’s popularity among American users. It’s important to note that this extension does not overturn the law; TikTok still needs to find a US company to take an 80% stake or face a ban under existing legislation.

However, Trump said on Truth Social (an alt-tech social media and technology company majority-owned by Trump), “I would like the United States to have a 50% ownership position in a joint venture.  By doing this, we save TikTok, keep it in good hands and allow it to say up.  Without US approval, there is no Tik Tok.  With our approval, it is worth hundreds of billions of dollars – maybe trillions. Therefore, my initial thought is a joint venture between the current owners and/or new owners whereby the US gets a 50% ownership in a joint venture set up between the US and whichever purchase we so choose.”

Some investors, companies, and even personalities like MrBeast have said they are interested in acquiring the necessary stake in TikTok to keep it active in the US, but China had given no indication that it would be open to a sale. On January 22, Mao Ning, spokesperson for China’s Foreign Affairs Ministry, stated that “operation and acquisition regarding enterprises should be independently decided by companies according to market principles, and China’s laws and regulations should be observed if any Chinese companies are involved.”

The ban’s impact on US subscribers

As news of the ban spread, US-based friends and family began posting screenshots of TikTok’s shutdown message while online personalities shared tributes. While some may dismiss this as an overreaction, the ban profoundly impacts its vast subscriber base—disrupting daily lives for those who rely on the platform for entertainment, creativity, and social connection. Most affected are its predominantly young users;  around 55% are under the age of 30 with  25% aged 10-19, 22.4% aged 20-29, and 21.7% aged 30-39.

The ban poses significant challenges for content creators who have monetized their presence on TikTok—approximately two million creators rely on it for income. Many report a 30% decrease in sponsorship income as brands hesitate amid uncertainty about the app’s future. The loss of TikTok could result in an estimated $1.3 billion in monthly revenue being wiped out—underscoring its critical role in the creator economy. Transitioning to other platforms like YouTube or Instagram is not straightforward; creators often struggle to replicate their TikTok success due to differing algorithms and audience engagement styles.

For small businesses, TikTok serves as a powerful marketing tool that allows them to reach a wide and engaged audience at a relatively low cost. The ban forces these businesses to seek alternative marketing strategies that may not yield similar effectiveness or engagement levels—disrupting growth and customer outreach efforts. As influencers and small business owners grapple with these changes, many are focusing on diversifying their presence across multiple platforms while remaining concerned about losing the unique community and organic reach that TikTok provides.

In contrast, many Filipinos—particularly virtual assistants (VAs) and sales professionals within the Online Filipino Freelancers community—share similar concerns as their US-based clients about potential job losses due to this ban. With Trump’s 75-day extension in place, there is hope for easing transitions toward alternative marketing strategies or securing future non-US clients if the ban is ultimately upheld.

Resurfacing concerns

A tool for propaganda and surveillance

Despite its success, ByteDance faces international scrutiny due to accusations of censorship favoring the Chinese government and employing intrusive data-gathering techniques via apps like TikTok. “So are we supposed to ignore the fact that the ultimate parent is, is fact, subject to doing intelligence work for the Chinese government?”, said US Supreme Court Chief Justice John Roberts in an interview with ABC News.  

The US government has also expressed fears about potential Chinese disinformation campaigns gaining traction through TikTok—possibly leading to election interference on American soil. Britannica contributor Nicholas Gisonna reported that Emily Baker-White—a technology reporter for Forbes—claimed she was tracked by ByteDance after writing critically about TikTok; although initially denied by company officials, they later admitted employees accessed data from American users—including journalists. The US Department of Justice and the Federal Bureau of Investigation (FBI) announced in 2023 that they had begun an investigation in late 2022 into the claim against ByteDance.

TikTok Refugees: The Great Migration

Even before the ban took effect, many users began migrating en masse to RedNote (Xiaohongshu), one of China’s top lifestyle platforms often dubbed “China’s Instagram.” Over half a million users joined RedNote using the hashtag #TikTokRefugee—which has accumulated over 250 million views and more than 5.5 million comments since then.

Co-founded by Charlwin Mao and Miranda Qu, in Shanghai back in 2013, RedNote boasts over 300 million monthly active users as of 2023—with shareholders including tech giants like Alibaba, Tencent, and Singapore’s Temasek. Its unique format combines videos, photos, and long-form text while organizing content into categories such as “Live,” “Cosmetics,” and “Fashion,” making it easier for users to navigate content and allowing brands to target niche audiences effectively.

Interestingly, Americans engaging on RedNote have found Chinese users warm and welcoming despite rising anti-Asian sentiment following COVID-19; they are collaborating through language exchanges—teaching each other English and Mandarin within days.

RedNote’s interface | Screenshot from www.zoomsphere.com

However, it is ironic that users flocked to RedNote—a platform heavily monitored by the Chinese government under Communist Party censorship rules—where posts questioning inclusivity or discussing sensitive topics like Tiananmen Square have faced censorship or account suspension. This migration reflects both irony and protest; many view it as an opportunity for meaningful cultural exchange amid concerns about TikTok’s future under potentially altered ownership structures pushing political agendas that may stifle free expression.

As we navigate this uncertain landscape following TikTok’s ban in the U.S., it becomes increasingly clear that this situation extends beyond mere social media dynamics—it touches upon fundamental issues of free speech, economic stability for creators and businesses alike, and international relations shaped by technology’s role in our lives. While some users seek refuge in alternative platforms like RedNote amid fears of censorship returning under new ownership structures proposed by Trump’s administration—a critical dialogue emerges regarding how we balance national security with cultural expression in an interconnected world where digital communities thrive against all odds.

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