Monday, March 27, 2023
After several other countries, the United States (US) may also impose a ban on Chinese owned video-sharing app, TikTok as the White House is "very in favour" of the restriction.
A US senator has drafted a bill to target technologies with links to foreign governments, a move that may come as a national security measure as tensions rise between Washington and Beijing.
However, the social media influencers think that the potential ban could affect not only the influencer market in US but also the country's economy.
British publication The Guardian reported that the popular app has come under intense scrutiny from Congress amid fears of Beijing's accessibility to sensitive user data.
TikTok is owned by a Chinese firm ByteDance, and US Senator Mark Warner of Virginia said the country's laws require the parent companies to make user data accessible to the ruling Communist party.
The publication quoted Warner as saying that the proposed legislation for a ban "has also picked up support in his congressional chamber from 11 Democrats". However, he fell short of words in clarifying whether Biden’s administration would endorse a ban, particularly against TikTok.
As per a report published by the International Business Times (IBT), around 100 million Americans use TikTok and 65% of the 20 most popular influencers are among them.
There are several ways for the influencers to earn through the platform, one of which is a built-in monetisation tool, which is nothing like other platforms.
However, there is no set amount for their earning.
"Some earn between $0.02 and $0.03 for every thousand views on TikTok, while others between $9 to $38 a day on average," the report stated.
Now, shifting to other platforms is an option for the influencers as a possible ban looms.
Some of the TikTokers who spoke to the publication said that TikTok's popularity is based on the fact that the content creators can make their videos viral and build a following effortlessly as compared to YouTube.
Apart from the influencers, there are approximately 5 million US businesses that use TikTok to reach consumers and many of them have witnessed a significant jump in sales after engaging in the app.
For instance, American Eagle's Aerie brand made 100% more sales in Q2 after the launch of its #AerieREALPositivity campaign on the platform.
IBT quoted a businessman as saying the ban could affect the economic output as jobs in the Tech sector will be risked in the aftermath of the TikTok ban.
This could even lead to lower economic activity, while US businesses would lose the connections they have built via TikTok.