TikTok Algorithm Ownership Dispute – When Code Becomes a Matter of National Interest

Who should own and control TikTok's algorithm? A single line of code has become a central issue in global diplomacy.

Hello! I study IT policy and technology ethics, and one of the most intriguing recent cases for me has been the ‘TikTok algorithm ownership dispute.’ This isn't just about technical ownership — it's a complex issue involving national security, data control, and freedom of expression. With the U.S. government sanctioning TikTok and pressuring for a sale, and China firmly opposing the handover of the algorithm, the tension has escalated. In this post, we’ll look at what TikTok’s algorithm actually is, the key points of the issue, and what the future might hold.

Table of Contents

1. How Does TikTok’s Algorithm Work? 2. Why Is Algorithm Ownership a Problem? 3. U.S. Pressure for Sale and Legal Grounds 4. China’s Position and Technology Export Restrictions 5. The Beginning of the Global Algorithm War 6. Future Scenarios: Sale, Ban, or Separation?

1. How Does TikTok’s Algorithm Work?

TikTok’s core competitive edge lies in its user-personalized recommendation algorithm. It collects massive data points such as how long a user watches a video, whether they finish it, how they react to certain music, and more. Then, using machine learning, it delivers hyper-personalized content. This system plays a key role in determining what appears in the “For You” feed.

This algorithm is far more than just a content ranking system — it is deeply involved in shaping public opinion and social influence. That’s why governments around the world are reacting so sensitively to it.

2. Why Is Algorithm Ownership a Problem?

TikTok is a subsidiary of the Chinese company ByteDance, and the intellectual property rights of the recommendation algorithm are held by the headquarters. However, as suspicions emerged that U.S. user data could be transmitted to Chinese servers, the algorithm itself began to be seen as a national security threat.

Issue	Details
Intellectual Property Ownership	ByteDance headquarters in China holds the core algorithm source code
Data Sovereignty Concern	Fear that U.S. user data might be exposed to foreign governments
Algorithm Export Control	Chinese government designated the technology as "strategic" and restricted overseas transfer

3. U.S. Pressure for Sale and Legal Grounds

Since 2020, the U.S. government has attempted to regulate TikTok. By 2023–2024, it moved forward with a forced sale bill, claiming that foreign companies should not be allowed to control American citizens' data.

• National security reviews via CFIUS (Committee on Foreign Investment in the United States)
• Emergence of specific regulatory bills such as the “RESTRICT Act”
• Possibility of presidential orders prompting sale or ban of TikTok

4. China’s Stance and Technology Export Restrictions

The TikTok algorithm is not merely a corporate asset but classified as a strategic technology of China. In 2020, the Chinese government updated its list of export control technologies—including AI and content recommendation algorithms—effectively designating the TikTok algorithm as non-exportable.

This is seen as a countermeasure to the U.S. pressure to force a sale, justified by the need to protect digital sovereignty and strategic technology. China argues that the algorithm is not just code, but a “core asset” influencing culture, public opinion, and future industrial competitiveness.

5. The Beginning of a Global Algorithm War

The TikTok debate is not just about a single app. Moving forward, ownership and control over algorithms—in AI-based recommendation systems, search engines, and ad targeting—may become key global issues. The EU, India, Canada, and others are already enforcing strict regulations on tech companies including TikTok.

Country/Region	Key Measures	Purpose
United States	Pressure to sell TikTok, ban on government devices	National security, data sovereignty
EU	Implementation of the Digital Services Act (DSA)	Enhanced algorithm transparency, user protection
India	Ban on over 200 Chinese apps including TikTok	Digital sovereignty, security concerns

6. Future Scenarios: Sale, Ban, or Separation?

Currently, TikTok stands at a crossroads in the U.S. It’s uncertain whether it will operate as a separate U.S. entity while retaining algorithm ownership, be sold off, or get banned entirely.

• Sale: Transfer to a new entity managing U.S. user data
• Ban: Possible revival of a full ban as attempted during the Trump administration
• Split Operation: Technical separation between global TikTok and TikTok U.S.
• International Norms: Expansion of discussions on global algorithm sharing or audit systems

Frequently Asked Questions (FAQ)

Q Why is the TikTok algorithm considered so important?

The TikTok algorithm is a core technology that recommends content based on user behavior data. It significantly impacts user engagement, advertising effectiveness, and even public opinion—making it a matter of political and diplomatic concern.

Q Why is the U.S. targeting TikTok?

Concerns center around ByteDance, a Chinese firm, potentially collecting and controlling U.S. user data, and influencing public opinion via the algorithm. These factors have framed the issue as a national security threat.

Q If TikTok is sold, can the algorithm be transferred too?

The Chinese government has designated the algorithm as a strategic technology, restricting its overseas sale. Even if a U.S. company acquires TikTok, it’s unlikely the algorithm itself would be part of the deal.

Q Have other countries besides the U.S. imposed regulations on TikTok?

Yes. India has banned over 200 Chinese apps including TikTok, and the EU is enforcing the Digital Services Act (DSA), demanding algorithmic transparency.

Q Doesn’t ByteDance already have a separate U.S. entity?

Yes. TikTok US operates as a separate legal entity with its own servers, but the core algorithm remains under control of the Chinese headquarters—fueling controversy over this dual structure.

Q Are there international standards or oversight for algorithms?

Not yet. There are only country-level or regional regulations. International standards or audit systems for algorithms are still in the early stages of discussion.

Algorithms: From Technology to Political Weapon

The dispute over TikTok's algorithm isn't just about business competition. Algorithms have now become central to global security, democracy, sovereignty, and cultural control. Code is no longer a neutral technology. It influences what data we see and what content we trust. Who owns and controls these algorithms could shape the future of our world. I hope this article gives you a chance to reflect on the ethics, politics, and importance of defending our digital sovereignty.