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U.S. lawmaker warns TikTok algorithm licensing deal poses national security risks

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A senior U.S. lawmaker raised fresh concerns Thursday over a proposed licensing deal for TikTok’s algorithm as part of the planned sale of the app’s U.S. operations by its Chinese parent company ByteDance, warning that any continued Chinese influence over the technology could threaten national security.

Representative John Moolenaar, chair of the House Select Committee on China, said he is awaiting a formal briefing on the deal, which would reportedly allow the new U.S. owners of TikTok to license the platform’s algorithm from ByteDance.

“I think anytime you have China with leverage over the algorithm, that’s a problem,” Moolenaar said during remarks at the Hudson Institute, adding that the arrangement could leave room for undue influence.

The White House previously said the agreement meets the national security requirements set out in a 2024 law mandating ByteDance to divest TikTok’s U.S. assets or face a ban. President Donald Trump signed an executive order on September 25 approving the sale and granting 120 days to complete the transaction.

Under the proposal, ByteDance would retain less than 20% ownership in the new U.S. entity, with Americans holding the remaining board seats. The algorithm, which drives TikTok’s recommendation system, would be retrained and monitored by U.S. security partners.

Moolenaar, however, expressed skepticism that the algorithm could be fully reprogrammed or separated from its Chinese origins, noting, “It’s still very much a work in progress.”

TikTok did not immediately respond to requests for comment.

China’s SiCarrier subsidiary launches homegrown chip design software amid U.S. tech tensions

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A subsidiary of SiCarrier, a Chinese chip equipment manufacturer with close ties to Huawei, has unveiled two domestically developed chip design software tools, marking another step in China’s drive for semiconductor self-sufficiency, according to Chinese state-backed outlet The Paper.

The SiCarrier unit, called Yunqifang, introduced two electronic design automation (EDA) programs with fully independent intellectual property rights, aiming to reduce China’s reliance on Western technology in chip design. EDA software is critical to developing the blueprints of advanced semiconductors, which are central to modern electronics and artificial intelligence.

The announcement comes as U.S.-China tech tensions escalate. Earlier this year, Washington temporarily restricted exports of EDA tools to China after Beijing suspended exports of rare earths and magnets, which are vital for chipmaking. Analysts have warned that prolonged U.S. restrictions could cripple China’s semiconductor design capabilities, where it still trails the United States.

The timing of the launch coincides with U.S. President Donald Trump’s renewed threats to impose 100% tariffs on Chinese exports and expand export controls on “any and all critical software” by November 1, days before current tariff relief is due to expire.

Founded in 2021 and owned by the Shenzhen city government, SiCarrier has emerged as a strategic player in China’s semiconductor industry, aligning with Beijing’s push for technological self-reliance. Its progress reflects the broader effort to build a complete, homegrown semiconductor ecosystem capable of withstanding foreign trade pressures.

Malaysia to discuss semiconductor tariffs with U.S. at ASEAN summit next week

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Malaysia plans to hold talks with U.S. Commerce Secretary Howard Lutnick next week on sectoral tariffs, including those on semiconductors, during the ASEAN Leaders Summit in Kuala Lumpur, state media reported on Wednesday.

The discussions come amid rising trade tensions after President Donald Trump’s administration imposed a 19% tariff on Malaysian exports to the U.S. in August. While semiconductors are currently exempt, they remain under review as part of a U.S. national security probe.

Malaysia is the world’s sixth-largest semiconductor exporter, and officials have warned that removing exemptions on chip exports could hurt competitiveness and disrupt global supply chains. Trade Minister Tengku Zafrul Aziz said he expects to finalize tariff negotiations with Washington during the summit, scheduled for October 26–28.

“I will hold discussions with Lutnick. He will also be attending the ASEAN Leaders Summit next week,” Tengku Zafrul told state news agency Bernama, adding that a final tariff agreement could be signed during the event.

The minister said Malaysia’s agriculture, industrial, and manufacturing sectors, as well as those engaged in U.S. trade and investment, are likely to benefit from the upcoming agreement. Several other ASEAN members are also expected to sign bilateral trade deals with Washington at the summit.

Under current U.S. policy, most Southeast Asian nations face tariffs between 19% and 20%, with Singapore receiving a 10% rate, while Laos and Myanmar have been hit with 40% tariffs.