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TikTok's Hong Kong exit a 'win-win' business move
By James EDGAR
Hong Kong (AFP) July 9, 2020

TikTok launches new ad platform as scrutiny increases
Washington (AFP) July 8, 2020 - Fast-growing video-sharing app TikTok on Wednesday launched a self-serve ad platform, underscoring its ambition to compete with rival social platforms even as it faces new scrutiny in the US and elsewhere.

The new global TikTok For Business platform is aimed at small and mid-size businesses and offers "innovative tools with which to create authentic, creative content unique to the app," according to a statement from TikTok, which is owned by China-based ByteDance and has an estimated one billion users worldwide.

"TikTok's immersive, short-form videos give businesses a platform to participate and engage with a community known for its creativity, ingenuity, and joy," said vice president Blake Chandlee in a statement.

The move could ramp up efforts by TikTok to compete with platforms like Facebook, YouTube and Twitter, but comes after the app was banned in India and with US authorities studying actions against the platform.

President Donald Trump, asked about a possible ban, told Bloomberg News, "It's something we're looking at," suggesting an action as a means of punishing China.

"It's a big business. Look, what happened with China with this virus, what they've done to this country and to the entire world is disgraceful."

TikTok has sought to distance itself from its Chinese owners, pointing out it has an American CEO and consistently denying allegations that it shares data with Beijing.

On Monday, TikTok said it was pulling out of Hong Kong after a new national security law imposed by China gave authorities sweeping powers to police the internet.

The research firm eMarketer estimates TikTok has more than 52 million US users, having gained some 12 million since the outbreak of the coronavirus pandemic. TikTok is especially popular with young smartphone users.

In India, Prime Minister Narendra Modi's government this week banned 59 Chinese apps including TikTok, WeChat and Weibo and said they were "engaged in activities... prejudicial to sovereignty and integrity of India, defense of India, security of state and public order."

TikTok's move comes amid a growing ad boycott of Facebook, led by activists claiming the world's biggest social network has failed to curb hateful and vitriolic content.

Viral video platform TikTok's withdrawal from Hong Kong is a savvy commercial move that sidesteps thorny privacy issues but it will not shield the app completely from accusations of collusion with China, experts say.

As Facebook, Twitter and other US tech giants risk angering China by refusing to share Hong Kong user data, Chinese-owned TikTok has also portrayed an image of principle by pulling out of the territory.

The moves were triggered by China's imposition of a security law on Hong Kong last week aimed at quashing a democracy movement, and gives police new powers to censor the internet.

TikTok's exit from Hong Kong was partly an effort to shake off the "label of it being a company that is controlled by China and shares data with the Chinese government," Zhu Zhiqun, a political science professor at Bucknell University in the United States, told AFP.

However TikTok's parent company, ByteDance, has a similar app for mainland China called Douyin that does share users' data with the Chinese government.

And while Douyin is not officially available for download in Hong Kong, ByteDance is happy for it to be used in the city of seven million people.

"The company does not have plans to make Douyin available on the Hong Kong app store, but Douyin has local Hong Kong users who have downloaded it in mainland China," a ByteDance spokesman told AFP.

- 'Win-win' -

Leaving Hong Kong allows TikTok to focus on building its increasingly lucrative American market, while ceding only a little bit of ground to its sister app, according to tech expert Elliott Zaagman.

"(TikTok is) primarily concerned now with staying alive in the United States," said Zaagman, who writes for the Lowy Institute think tank in Australia and presents the China Tech Investor podcast.

"TikTok will lose their Hong Kong users, but Douyin will gain their Hong Kong users... it's kind of a win-win."

TikTok and Douyin are among the worlds' most popular apps, with more than 2.2 billion downloads, according to US-based research agency SensorTower.

Their kaleidoscopic feeds of 15 to 60-second video clips are often fun and humorous, featuring everything from make-up tutorials to dance routines.

However, with its rising popularity in the United States, TikTok has also come under increasing scrutiny from the US government.

US President Donald Trump said this week he was considering banning it as a way to punish China over the coronavirus pandemic.

Other top American lawmakers have raised concerns over the potential for Tiktok to leak users' data to the Chinese government.

"TikTok is a potential counterintelligence threat we cannot ignore," two senior US senators wrote last year.

India -- where TikTok is also wildly popular -- recently blocked the platform on national security grounds following a deadly border clash between its soldiers and Chinese forces.

TikTok staunchly denies snooping allegations.

"We have never provided user data to the Chinese government, nor would we do so if asked," a spokesman said on Wednesday.

TikTok has also faced questions on whether it hides videos from Hong Kong's protests to appease the Chinese government.

Searches this week on TikTok for #democracy and #independence in Hong Kong came up with no videos, according to AFP research.

However some hashtags, including #nationalsecuritylaw and #HongKongindependence, did produce results.

A Tiktok spokesman denied any censorship.

"To be clear, we have no restrictions on political content, unless it violates our community guidelines, such as hate speech," the spokesman told AFP on Wednesday.

"We do not remove videos on the basis of content negative toward China, including Hong Kong protest content."

With TikTok's future depending much more on factors outside Hong Kong and mainland China, its withdrawal from the territory could turn out to be a PR coup.

"It seems that TikTok's users were relatively few in Hong Kong, so commercially it also makes sense to avoid any reputation damage, and simply pull out of the market," Severine Arsene, from the Chinese University of Hong Kong, told AFP.

"The effectiveness of the strategy depends, however, on many more factors which are not necessarily within the control of the company, in the context of the trade wars and geopolitical rivalries."

Pro-democracy lawmaker Charles Mok said TikTok won't be missed by young Hong Kongers, who have avoided the app anyway over spying fears and are now "scrabbling around to delete their conversations on Facebook, Twitter or Instagram" since the passing of the security law.

Domestic workers among few Hong Kongers who will miss TikTok
Hong Kong (AFP) July 9, 2020 - TikTok's exit from Hong Kong was met with a shrug among many locals who distrust the Chinese social media platform, but the app had been embraced by many foreign domestic workers as a way to creatively escape the drudgery of their toil.

The globally popular video-sharing app was used by many of the city's 370,000 foreign helpers, as they are commonly known in the finance hub.

In between cooking, cleaning and childcare duties in Hong Kong's cramped family homes they filmed creative, witty and sometimes scathing insights into their daily lives.

But this week TikTok, owned by China's ByteDance, said it would no longer work in Hong Kong after a new security law imposed by Beijing gave authorities sweeping powers to police local users.

Joane, a domestic worker from the Philippines, said she was "a bit sad" to see the app go.

"It also helped me release some stress," she told AFP.

"Being away from family, financial problems, stress from work" are among the challenges faced by helpers in the city, she said, adding that the app's popularity had taken off since the coronavirus pandemic meant workers like her were often stuck at home.

Poorly paid domestic workers, primarily from the Philippines and Indonesia, are the cogs that keep Hong Kong's economic engine running, enabling both parents of a family to hold down full-time jobs in the notoriously expensive city.

Domestic workers must live with their employers in Hong Kong's tiny flats, are only entitled to one day off a week and often grapple with stressful work environments.

"When (your) employer makes you... non-stop do this and do that and do this and so on," reads the text in a video Joane posted in May.

"Breathe in, breathe out... And say 'yes ma'am, yes sir'."

- Limited traction -

So popular is TikTok among women like Joane that the hashtag #ofwhk -- "overseas foreign worker Hong Kong" -- has been viewed nearly 12 million times on the platform.

Local recruitment specialist Mirian Sim said she began using the app herself to communicate with and recruit migrant workers when she noticed how big its user base had become.

"I started using it as a way to bond with our existing helpers, to spread positive vibes and information for them," said Sim, whose agency Garford describes itself as an "ethical employment agency" that specialises in hiring Filipino helpers.

But enthusiasm for the platform from foreign workers -- and teenagers around the world -- stands in stark contrast to the rest of Hong Kong.

TikTok has gained little traction in the city, reporting just 150,000 local users last August.

By comparison, Facebook currently has 5.6 million local users and Instagram has 2.6 million, according to analytics company NapoleonCat.

In a city rocked by anti-Beijing sentiment, few trust ByteDance's repeated assurances that it does not share any user information with Chinese authorities.

Online forums used by Hong Kong democracy protesters have long advised people against downloading it, echoing security fears raised by the US government.

Joane said domestic workers could ultimately live without the app.

"We find TikTok very entertaining, but I know even if TikTok will be pulled out of Hong Kong, a lot of Filipino domestic workers can still manage," she said.

"We always find ways to entertain ourselves."


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