CEO has less power than Chinese owners do over TikTok, former employees say

Chinese executives have more influence over TikTok‘s day-to-day operations than the company disclosed after it appointed the Singapore-born Shou Zi Chew as CEO in an attempt to dilute the social media app’s connection to China, former employees said.

Decisions about TikTok’s operations and strategy are made by Zhang Yiming, the Chinese founder of TikTok owner ByteDance, according to a dozen former employees interviewed by the New York Times. These included decisions about emphasizing livestreaming and shopping on the platform.

The claims offer insight into the relationship between the social media network, which is the most downloaded app in the world and has gained preeminence among young Americans, with its Chinese parent company.

TikTok’s growth and strategy teams don’t report to Chew but to ByteDance’s office in Beijing, the employees claimed. TikTok’s public relations team claimed that Chew was ultimately responsible for product and strategy, while the employees said he was more involved in the finances and operations.

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Chew was raised in Singapore and started working at Facebook as an intern in 2010 before founding a Chinese news aggregator that would become the basis of ByteDance. He left the company to serve as the chief financial officer for the Chinese electronics company Xiaomi in 2015 and led its first public offering. He was later invited back to act as CFO for TikTok in March 2021, only to be promoted to CEO in May 2021 after the company lacked a CEO for several months due to Kevin Mayer stepping down amid the Trump administration’s efforts to limit TikTok’s spread in the United States.

While Chew’s appointment helped the company circumvent Chinese and U.S. concerns, he had less power than a traditional CEO might. Any changes to TikTok’s core app and features run through Zhang and several other ByteDance executives due to the company typically testing new features in the Chinese market before releasing them worldwide. Chew’s choice as CEO was partly influenced by the optics involved, the former employees said.

Chew’s role in the company has earned scrutiny as tech executives and lawmakers addressed the company and its relationship with China. Most speakers at the Code Conference, a newsmaking event that features lawmakers and executives, slammed TikTok and recommended restricting it.

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TikTok’s chief operating officer, Vanessa Pappas, evaded several queries from lawmakers on the company’s interactions with China and its security practices in an appearance before Congress on Wednesday. She also avoided multiple queries about whether the company had connections to the Chinese Communist Party and whether Chinese employees had access to U.S. data, based on a Buzzfeed News report.

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