China Says US Spreading Disinformation, Suppressing TikTok

The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
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China Says US Spreading Disinformation, Suppressing TikTok

The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake

China accused the United States on Thursday of spreading disinformation and suppressing TikTok following reports that the Biden administration was calling for its Chinese owners to sell their stakes in the popular video-sharing app.

The US has yet to present evidence that TikTok threatens its national security and was using the excuse of data security to abuse its power to suppress foreign companies, Foreign Ministry spokesperson Wang Wenbin told reporters at a daily briefing.

“The US should stop spreading disinformation about data security, stop suppressing the relevant company, and provide an open, fair and non-discriminatory environment for foreign businesses to invest and operate in the US,” Wang said.

TikTok was dismissive Wednesday of a report in The Wall Street Journal that said the Committee on Foreign Investment in the US, part of the Treasury Department, was threatening a US ban on the app unless its owners, Beijing-based ByteDance Ltd., divested.

“If protecting national security is the objective, divestment doesn’t solve the problem: A change in ownership would not impose any new restrictions on data flows or access,” TikTok spokesperson Maureen Shanahan said.

Shanahan said TikTok was already answering concerns through “transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification.”

The Journal report cited anonymous “people familiar with the matter.” The Treasury Department and the White House’s National Security Council declined to comment.



Pinterest Shares Surge as Strong Ad Spend Defies Tariff Uncertainty

A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)
A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)
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Pinterest Shares Surge as Strong Ad Spend Defies Tariff Uncertainty

A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)
A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. (Reuters)

Pinterest shares jumped more than 11% on Friday, after a strong quarterly revenue forecast allayed investor jitters about the uncertainty of advertising spending on its platform amid global economic volatility.

Its robust first-quarter revenue positions it alongside peers Reddit and Facebook-parent Meta, which also saw strong top-line results at a time when deepening global trade tensions have clouded the outlook for many firms dependent on marketing spend.

A shifting US trade policy coupled with escalating geopolitical tensions have sparked fears of a spike in inflation levels and a possible recession, prompting a broader pullback in consumer and enterprise spending.

However, Pinterest's focus on strengthening the effectiveness of its artificial intelligence tools for creating ad campaigns and a growing Gen Z userbase makes it an attractive destination for marketers.

"AI is helping to serve up the right type of ads for different audience segments, which ultimately means there could be a greater propensity to click on the ad if it is relevant," said Dan Coatsworth, investment analyst at AJ Bell.

Pinterest's global monthly active users rose 10% from a year earlier to 570 million in the first quarter, exceeding analysts' expectations according to data compiled by LSEG.

"We believe Pinterest's strategic focus on AI improvements and international expansion is yielding results," said Angelo Zino, senior equity analyst at CFRA Research.

Pinterest flagged a reduction in spending from Asian e-commerce retailers due to the roll-back of the "de minimis" exemption earlier this year, which led notable Chinese advertisers including online marketplace Temu and fast-fashion retailer Shein to slash ad budgets.

Barclays analysts said they expect "trends to worsen in e-commerce advertising" later this year if and when tariffs impact consumer spending.

If gains hold, Pinterest is set to add around $2 billion to its market cap.

The company trades at 14.51 times the estimates of its earnings for the next 12 months, compared with Reddit's 67.65 and Snap's 22.19.