Apple, Tesla 'Most Likely To Be Affected' If China Claps Back After TikTok Crackdown, Says Expert: 'I Think For Sure There Would Be Retaliation'

The TikTok crackdown bill, which has been approved by the House of Representatives, is now heading to the Senate. Eric Jackson has warned of potential retaliation, with Apple Inc AAPL and Tesla Inc TSLA possibly being targeted.

What Happened: The bill, if passed by the Senate and signed by President Joe Biden, would compel the Chinese owners of TikTok to sell the app within five months or face a U.S. ban.

In an interview with CNBC’s Last Call, Eric Jackson, who runs EMJCapital, expressed concerns about possible retaliation. “The two companies most likely to be affected would be Apple and Tesla. What if the Chinese government said $AAPL and $TSLA had to divest in their Chinese operations?”

"I think for sure there would be retaliation."

The bill, which was passed with 352 votes in favor, would affect around 150 million U.S. users. If a ban is imposed, app stores like Apple and Google would likely be ordered to remove TikTok from their platforms.

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ByteDance, TikTok’s parent company, has argued that it does not share U.S. data with the Chinese government. However, a Wall Street Journal investigation found limitations in ByteDance’s “Project Texas,” a $1.5 billion initiative aimed at protecting U.S. data.

Despite the bill, TikTok has stated that it would appeal before considering any divestiture from ByteDance.

Why It Matters: The bill’s passage comes amid concerns over TikTok’s potential to influence U.S. elections. Avril Haines, the Director of National Intelligence, raised the alarm over China using TikTok to interfere in the 2024 U.S. elections.

Meanwhile, former President Donald Trump has opposed a potential TikTok ban, arguing that it would significantly benefit Meta Platforms‘ Facebook.

Amid the looming ban on TikTok, billionaire entrepreneur Mark Cuban gave the example of Elon Musk and X while voicing his opinion on social media platforms and their obligations towards underage users.

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