Author: Jack McCreery
Topic: Tik Tok Ban
Committee: Government and Law
Committee Chair: ANDREW VANDERKOLK
The potential ban of TikTok on U.S. devices has sparked input from many voices, each offering different ideas about what this action would mean for the United States. While many stakeholders believe that the ban would benefit the U.S. economy and foster domestic innovation, its impact is complex. On a broad scale, the ban could have a positive economic effect by ensuring that revenue stays with U.S. companies rather than flowing to China. Experts suggest that American firms would fill the void left by TikTok’s exit, as platforms like Instagram and Snapchat have already developed their own short-form content features. However, this assessment overlooks the small-scale impacts. Many content creators who depend on TikTok for income could suddenly lose their primary revenue stream, indicating that the ban may harm individuals even if it benefits large corporations.
Furthermore, this debate underscores a larger conversation about the role of global tech companies in national affairs. As policymakers weigh economic benefits against potential social and security risks, the discussion reveals deep-seated concerns about digital sovereignty and control over critical data. Balancing innovation with national security remains a central challenge for lawmakers and industry leaders alike.
Data Security Concerns
TikTok is owned by the Chinese internet technology company ByteDance, which has raised concerns among the U.S. Congress and other Western governments. The primary worry is that, because ByteDance is headquartered in Beijing, the data collected by TikTok could be subject to Chinese government investigations. Legislation such as the 2017 National Intelligence Law and the 2014 Counter-Espionage Law requires Chinese corporations to turn over data when requested by authorities. This presents an ethical dilemma, as TikTok users may not consent to having their personal data accessed by Chinese officials. Although TikTok has introduced “Project Texas” to address these concerns—storing U.S. user data with a U.S.-based contractor, Oracle Corp.—a significant amount of data remains in Chinese centers.
In addition, the evolving nature of cybersecurity threats means that even with these measures, risks persist. Critics argue that the geopolitical tension between the U.S. and China makes any data-sharing arrangement inherently unstable. As technology continues to advance, policymakers must remain vigilant and continuously update regulations to ensure that user data is protected against emerging threats.
Influence on Public Opinion
Another concern is that the Chinese government may be using TikTok to influence U.S. public opinion. While definitive proof is lacking, many U.S. politicians, 
including Dan Crenshaw and Mike Gallagher, suspect that TikTok censors anti-China sentiment while promoting pro-China content. As China seeks to challenge the United States as the world’s largest economy, enhancing its global image could boost foreign investment and trade. Consequently, Congress passed a bill in April 2024 stipulating that if TikTok is not sold by ByteDance, the platform will be banned in the United States.
Moreover, the potential for algorithmic manipulation extends beyond overt political messaging. The subtle reinforcement of certain narratives over others can have long-term implications for public discourse and democratic engagement. This raises questions about the balance between free expression and the prevention of covert influence, emphasizing the need for transparent algorithms and oversight in digital platforms.
Economic Implications
Although the full economic impact of a TikTok ban remains uncertain, many experts believe that removing TikTok from U.S. devices could be largely beneficial to the domestic economy. A panel hosted by the University of Chicago Booth Review found that 54% of economic experts expected a positive impact from the ban, with 25% remaining uncertain. Economists argue that banning TikTok—whose profits are currently sent to China—would boost demand for domestic alternatives such as Meta’s Reels and YouTube Shorts. Oxford professor Vili Lehdonvirta contends that Instagram Reels is well positioned to fill the gap left by TikTok. In the U.S., Instagram Reels is already growing at a rate of about 20% (with 13 million users) compared to TikTok’s 4% (4.8 million users). Without TikTok, this growth may accelerate further, encouraging Meta to invest more in short-form content and advancing American innovation.
At the same time, critics caution that the ban might create short-term disruptions in the digital advertising market and innovation ecosystem. Some analysts point to potential losses in revenue for startups and small tech companies that rely on TikTok’s platform for exposure. Thus, while macroeconomic benefits are promising, the transition period may require additional support for sectors that face immediate challenges due to the ban.
Productivity and Distractions
A less measurable benefit of a TikTok ban may be increased productivity among U.S. workers. According to TikTok’s public statistics, the average American user spends 53.8 minutes per day on the app—the highest among social networking platforms. Eliminating TikTok could remove one major distraction from the workplace, potentially increasing overall productivity. However, there is also the possibility that users may simply switch to similar services like Instagram Reels, which could negate any productivity gains.
Furthermore, the ban may prompt employers to reexamine their workplace policies regarding digital distractions more broadly. Companies might invest in technology solutions and employee training to foster a more focused work environment, potentially sparking a trend towards stricter digital use policies. This renewed focus on productivity could lead to long-term benefits in efficiency and employee performance.
Impact on Content Creators
Although a national TikTok ban may benefit the U.S. economy broadly, it fails to account for the thousands of creators who rely on the platform for their livelihood. Many creators would lose not only their primary platform but also a significant stream of income. While high-profile creators might easily transition to other platforms like YouTube or Reels, smaller creators could lose their established audiences and be forced to start over. For instance, while a viral TikTok star might migrate successfully, a hobbyist sharing cooking recipes could lose her following almost overnight.
In response, some industry observers suggest that the ban could accelerate the diversification of content platforms, pushing creators to build their brands across multiple channels. This transition might encourage a more resilient digital ecosystem where creators are less dependent on a single platform. However, the process of building a new following could be challenging and may widen the gap between already prominent influencers and emerging talent.
Monetization Differences
It is important to note the differences in how TikTok and Instagram Reels support content creators. TikTok’s creator fund compensates creators based on views and engagement (likes, comments, and saves), and creators can also earn money through brand partnerships and commissions. Reels offers similar monetization opportunities, including compensation for views and interactions, brand partnerships, and commissions on sales made through embedded links. Additionally, Instagram provides opportunities for creators to participate in ad campaigns and display ads within posts and stories. However, differences in their algorithms result in distinct financial outcomes. Instagram Reels’ algorithm favors viral content with high engagement rates, whereas TikTok’s algorithm prioritizes personalized content that fosters rapid growth for emerging creators. This design has helped many new influencers gain prominence on TikTok, making it an attractive platform for those seeking quick financial gains.
Additionally, these monetization models could influence the competitive landscape of social media platforms. TikTok’s creator fund and e-commerce platform has driven up to $15 billion in revenue to small businesses, as detailed in the TikTok Economic Impact Report 2024. As each platform fine-tunes its compensation strategies, there may be increased pressure on companies to innovate further in order to attract top talent. This competition could ultimately lead to more diverse and robust revenue streams for creators, though it might also result in significant shifts in market dynamics that require careful regulatory oversight.
National Security and Political Dynamics
The issue extends beyond individual creators. Many small businesses use TikTok for advertising, benefiting from the platform’s massive user base and unique engagement. According to Inigo Rivero, Managing Director at House of Marketers (a leading TikTok agency), TikTok is “too integrated into American society to be banned” and plays a significant role in small-business advertising. Nonetheless, national security concerns continue to provide a strong rationale for the ban. Should TikTok remain unsold by ByteDance, it will be removed from U.S. app stores on January 19, 2025—one day before President-elect Donald Trump is scheduled to take office. Although Trump, who previously supported efforts to ban TikTok during his presidency, has since become a vocal supporter of the platform (stating during his campaign, “For all of those who want to save TikTok in America, vote for Trump”), he may attempt to reverse the ban once in office. Ultimately, while some effects of the ban are foreseeable, many specifics remain uncertain and may only become clear after the ban is implemented.
This move also highlights the broader geopolitical contest between the U.S. and China, reflecting a trend toward digital protectionism amid rising global tensions. As governments grapple with the challenges posed by transnational technology firms, similar measures may become more common, further intertwining national security concerns with economic and political strategies on the international stage.