Mar 27, 2023 - Technology
The standoff between the U.S. government and TikTok underscores a growing problem for policymakers: Chinese apps are booming in America, but most U.S. apps aren't able to operate in China.
Why it matters: Mobile apps are one of the most powerful vectors for expanding trade and exporting soft power, given how widely accessible they are, how much time is spent on them, and how little regulatory oversight there is online.
Americans hooked on Chinese apps
- Sara Fischer, author of Axios Media Trends
The standoff between the U.S. government and TikTok underscores a growing problem for policymakers: Chinese apps are booming in America, but most U.S. apps aren't able to operate in China.
Why it matters: Mobile apps are one of the most powerful vectors for expanding trade and exporting soft power, given how widely accessible they are, how much time is spent on them, and how little regulatory oversight there is online.
- Chinese companies are able to "leverage China’s one billion internet users to test user preferences and optimize their AI models at home, then export the tech overseas," The Wall Street Journal notes. But given censorship demands in China, American tech firms can't reciprocate.
- Temu, an online retailer, has quickly become one of the fastest-growing apps in the U.S., giving marketplaces like Amazon and Walmart a run for their money. The company is based in Boston and owned by PDD Holdings, a multinational commerce company that's publicly traded on the Beijing stock exchange. PDD is also parent to Chinese social commerce company Pinduoduo.
- TikTok continues to gain traction in the U.S., even amid calls for a possible ban. TikTok was by far the most-downloaded app in the U.S. and globally last year.
- CapCut, a video editing app owned by TikTok parent ByteDance, is also gaining ground in the U.S. as a vehicle for young users to optimize their short-form video posts on TikTok, Instagram and YouTube.
- SHEIN, a fast-fashion giant based in Singapore but founded in China, has long been one of the most-downloaded e-commerce apps in the U.S. The company was founded by Chinese entrepreneur Chris Xu, and most of its suppliers are in China.
- Case-in-point: TikTok is the only app in the top 20 most-visited apps in the U.S. last month, per Comscore. Eight of the top 10 are owned by Google or Meta. The vast majority of the top 20 are owned by those two firms, Amazon or Apple.
