By David Shepardson
WASHINGTON (Reuters) -President-elect Donald Trump cannot ignore a law requiring Chinese-based ByteDance to divest its popular short video app TikTok in the U.S. by early next year or face a ban, the Democratic chair of a U.S. Senate panel said on Tuesday.
Senator Richard Blumenthal, a Democrat who is holding a hearing on Chinese hacking incidents, cited the law passed by Congress in April as a result of security concerns that China could access data on TikTok on Americans or spy on them with the app.
Blumenthal on Tuesday also raised security concerns about Tesla (NASDAQ:TSLA) and SpaceX CEO Elon Musk's ties to China as well as other tech firms.
Blumenthal noted that Congress was requiring divestiture of the app by Jan. 19, unless President Joe Biden grants a one-time extension of up to 90 days, which he can only do if ByteDance has made significant progress. Trump, who unsuccessfully tried to ban TikTok in 2020, has said if elected in November he would not allow TikTok to be barred.
"He can't ignore the law," Blumenthal said. "If he wants to change the law, he can try, but I can tell him and tell the American people -- sentiment is pretty strong here in favor of that law."
Separately, Blumenthal raised concerns about China's ties to U.S. technology companies including CEO Elon Musk's Tesla and SpaceX. Musk is closely involved in Trump's transition. Blumenthal said Tesla produces about half its cars in China and noted the U.S. Defense Department's heavy reliance on SpaceX.
"Those extensive economic ties and China's willingness to exploit them are a dangerous combination, a real risk to this country," Blumenthal said adding "Mr. Musk and Tesla are far from the only ones in Big Tech facing this situation."
Blumenthal also raised concerns about Apple (NASDAQ:AAPL), because he said it complies with China's censorship and surveillance demands and 20% of its sales and 80% of its suppliers have operations in China.
"When forced to choose between American security and hugely profitable access to the Chinese market, Americans may doubt that SpaceX, Mr. Musk, (Apple CEO) Tim Cook and other technology leaders will side with America," Blumenthal said.
Apple and Tesla did not immediately comment.
Driven by worries that China could access data on Americans or spy on them with TikTok, the U.S. Congress passed the measure with overwhelming support and President Joe Biden signed it into law in April.
TikTok and ByteDance have challenged the law. A decision is expected in the coming weeks by a U.S. appeals court. TikTok did not immediately comment.
The law prohibits app stores like Apple and Alphabet (NASDAQ:GOOGL)'s Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok by the deadline.
The Biden administration has said it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok.