The US demands that the Chinese owner of TikTok sell its stake in the app or it will be banned in the country

The Biden administration has threatened to ban TikTok in the US unless its Chinese owner sells its shares in the app.

It marks the first time the administration has explicitly threatened a ban and represents a change in its attitude toward the platform, which Republicans have said is a threat to national security for the way it collects data from US citizens.

The lawsuit was filed by the United States Committee on Foreign Investment and specifies that TikTok’s parent company, ByteDance, sell its stake in the US version of the app.

It’s unclear if federal officials have given ByteDance a deadline to sell.

Hilary McQuaide, a spokeswoman for TikTok, confirmed to DaiyMail.com that the lawsuit was filed, but suggested the changes would not increase data security for US citizens.

The demand was made by the Committee on Foreign Investment in the US, chaired by Janet Yellen, Secretary of the Treasury.

“If the goal is to protect national security, divestment does not solve the problem: a change in ownership would not place new restrictions on data flows or access,” it said in a statement.

“National security concerns are best addressed with transparent, US-based protection of US user data and systems, with robust monitoring, investigation, and third-party verification , which we are already implementing,” he added.

TikTok critics have said that Chinese laws require Chinese-owned companies to share data with the Chinese government.

Instead, TikTok is proposing a $1.5 billion security plan, dubbed Project Texas, that would see American user data protected and monitored by Texas-based Oracle.

The plan would include independent monitors and auditors to ensure that neither ByteDance nor Chinese officials can access certain data.

The Committee on Foreign Investment in the United States (CFIUS) is an interagency committee that oversees national security risks posed by foreign investment. It is chaired by Janet Yellen, Secretary of the Treasury, but its members include the heads of the departments of justice, defense, state and energy.

TikTok critics have said that Chinese laws require Chinese-owned companies to share data with the Chinese government.

ByteDance staff walk past the ByteDance headquarters building in Beijing in 2020. Its executives say that 60 percent of its shares are owned by foreign investors.

In 2020, President Trump (pictured in 2020) gave the Chinese company ByteDance 90 days to dispose of any assets used to support the popular app TikTok in the United States. His administration’s efforts were blocked in court.

TikTok executives have said ByteDance’s shares are 60 percent owned by global investors, 20 percent by employees and 20 percent by its founders, according to the report. Wall Street Journalwho first reported on the lawsuit.

TikTok CEO Shou Zi Chew will testify before the House Committee on Commerce and Energy next Thursday.

This request comes after a dozen US senators introduced a bipartisan bill last week giving President Biden the authority to ban TikTok nationwide.

The Restriction Act would allow the US Department of Commerce to declare companies with foreign ties national security risks.

Last December, the Senate passed a bill to ban TikTok on government devices.

In 2020, the Trump administration threatened to ban TikTok unless the app was sold to an American company. Those efforts were thwarted when ByteDance went to court to challenge the ban.

He argued that it would be a violation of the Berman amendments, which allow the free flow of “information material” from hostile countries.