ByteDance's owners include investors outside of China (60%), its founders and Chinese investors (20%), and employees (20%).[35] In 2021, the state-owned China Internet Investment Fund purchased a 1% stake in ByteDance's main Chinese subsidiary, Beijing ByteDance Technology (formerly Beijing Douyin Information Service), as a golden share investment[36][37][38] and seated Wu Shugang, a government official with a background in government propaganda, as one of the subsidiary's board members.[39][40][41]
—Wikipedia, check article for sources
In business and finance, a golden share is a nominal share which is able to outvote all other shares in certain specified circumstances
Does the Chinese government own or control ByteDance or TikTok?
Chew has emphatically told Congress that ByteDance is not owned or controlled by the Chinese government.
However, like most other Chinese companies, ByteDance is legally compelled to establish an in-house Communist Party committee composed of employees who are party members.
Analysts have said the “golden shares” provide a way for the Chinese government to get more directly involved with the day-to-day businesses of tech companies, including in the content they provide to the public.
Chew has admitted that the “golden share” exists. But he said it was for the purpose of internet licensing for the Chinese business.
In 2018, China amended its National Intelligence Law, which requires any organization or citizen to support, assist and cooperate with national intelligence work.
That means ByteDance is legally bound to help with gathering intelligence.
In 2021, China introduced a new data security law, which applies to data processing activities conducted outside of the country that may “harm the national security or public interests.”
There is also a cybersecurity law in China, which says the state will take measures to monitor, prevent and handle cybersecurity risks and threats “arising both within and outside the PRC’s territory.”
These vague and broad laws apply to technology companies and may be used to regulate them.