Arbitrage of the TikTok ban: The conundrum of the U.S.–China data war

Abstract Data privacy and protection are inextricably intertwined, whereas the former often slides into a national security concern. Amid geopolitical tensions, the U.S. aims to preserve TikTok’s independence and prevent its use in cognitive warfare. The landmark case presents potentially groundbreaking trade-offs for the Committee on Foreign Investment in the United States and the balance between data privacy and national security. The TikTok ban can be seen as a Catch-22 situation, presenting a Hobson’s choice for both the U.S. and China in the ongoing data war. The U.S. faces national security concerns regarding Chinese influence over the app’s data and its potential use for surveillance and propaganda. Conversely, banning TikTok risks setting a precedent for censorship and digital platform manipulation, undermining the U.S.’s long-standing commitment to free speech and open markets. The dilemma lies in whether to prioritize national security over the principles of free expression and open trade or to accept the risks posed by adversary-owned platforms operating in the U.S. This decision underscores rising tensions as the two powers grapple with data governance, digital sovereignty and geopolitical rivalry – an outcome that will shape global data governance and the technological landscape for years to come. A paradox emerges as China’s ideological aims and the U.S.’s technical concerns converge on a cutting-edge global challenge, that is, cognitive warfare in shaping global discourse and public opinion. This study examines how these conflicting forces shape TikTok’s quest to become a global platform, delving into the root causes of these tensions and exploring strategies to address the associated challenges.