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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.

U.S. Investigates Malware Email Linked to China Targeting Trade Talks

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U.S. authorities are probing a malware-laden email disguised as coming from Republican Representative John Moolenaar, aimed at infiltrating organizations connected to U.S.-China trade negotiations, the Wall Street Journal reported Sunday.

The July email was sent to trade groups, law firms, and government agencies, asking recipients to review draft legislation. Cyber analysts traced the malware to APT41, a hacking group widely believed to be linked to Chinese intelligence. Opening the attachment would have given hackers deep access to the targets’ systems.

Moolenaar, a vocal critic of Beijing and chair of a congressional committee on U.S.-China competition, said the incident was “another example of Chinese cyber operations aimed at stealing U.S. strategy,” adding: “We will not be intimidated.”

The attack coincided with sensitive trade talks in Sweden, which temporarily extended a tariff truce between Donald Trump and Xi Jinping until their expected November meeting at an Asian economic summit.

The Chinese embassy in Washington denied knowledge of the incident, stressing opposition to all cyberattacks while warning against “smearing others without solid evidence.”

The FBI confirmed it is working with partners to track those responsible. Meanwhile, the Capitol Police are investigating after staff on Moolenaar’s committee noticed unusual inquiries about the fake message.

The episode adds to mounting evidence of Beijing-linked cyber campaigns targeting U.S. institutions to gain insight into trade and national security deliberations.