Potential government action against Chinese social media giant TikTok could lead to a backlash that would hurt U.S. companies, say traders and guests on CNBC’s “Fast Money” program. TikTok CEO Show Zi Chu testified before Congress on Thursday, taking on the heat from both sides of the aisle. Many members of Congress have called for either a ban on TikTok in the US or the sale of the company that is shielding US users’ data. Banning TikTok could be a boost, at least in the short term, to its U.S. social media competitors, but the repercussions from China could hurt U.S. companies in the long term, according to Seymour Asset Management CIO Tim Seymour in “Fast Money”. “. Shortly before the TikTok hearing, a spokesman for the Chinese Ministry of Commerce said the country would “strongly oppose” the forced sale, the Associated Press reported. Advocate Advocate at Private Advisor Group, said the potential Chinese retaliation was the main thing he expected after the hearing: “It hasn’t happened yet and I hope it won’t. But the companies in the crosshairs “It’s clearly names like Starbucks, McDonald’s and Apple at the top of that list. And I don’t think this risk has been valued nearly enough,” Adami said. According to Deepwater Asset Management’s Gene Munster, government action against TikTok could pose a long-term threat to US social shares like Meta Platforms, even if the ban creates a short-term blip. sho not only for Meta. As you watch this, you can see that there is a huge concern about the addictive aspects of short video and social media. This also applies to Reels. in the short term, which I think is not priced in, we will see changes,” Munster said.
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