How do American universities make their money? | Counting the Cost
Summary
TLDRThis week's 'Counting the Cost' on Al Jazeera examines various pressing economic and political issues. The show begins with a spotlight on university funding in the US, where protests are demanding divestment from Israel due to its conflict with Gaza. The program explores the potential financial and moral impacts of such divestment, referencing past successful campaigns against apartheid South Africa and fossil fuels. The discussion also touches on the challenges universities face in divesting from specific entities. Next, the show shifts to the economic ramifications of the ongoing war in Ukraine, with a focus on the US and its allies' efforts to hold Russia accountable for its invasion. This includes a legislative move that could lead to Russia paying reparations, which has raised concerns about potential retaliation and legal challenges. The program also highlights the global response to the conflict, with a particular emphasis on the role of China and India in the current economic landscape. The potential for Russia to leverage its relationships with these nations is a key point of discussion. The episode then delves into the tech industry, with a feature on the potential US ban of TikTok over national security concerns. The potential legal and economic fallout of such a ban is explored, including the impact on small businesses that rely on the platform for marketing. Finally, the show addresses the broader implications of these issues for international relations, particularly between the US and China. It raises questions about the future of global trade and the potential for retaliatory measures if tensions continue to escalate.
Takeaways
- 📚 **University Divestment Movement**: Protests across US universities demand divestment from companies complicit in Israel's war on Gaza, highlighting a student-led movement for ethical investment.
- 🏛️ **Institutional Response**: Universities like Columbia and USC face calls to divest, with varied institutional responses ranging from dialogue to arrests, reflecting the complexity of the issue.
- 💵 **Financial Mechanisms**: Universities rely on endowment funds, investing in diverse assets; students are pushing for transparency and ethical reallocation of investments.
- 🌎 **Global Divestment History**: There's a precedent for successful divestment, as seen with South Africa's apartheid, although the Israel-Palestine situation presents unique challenges.
- 🤝 **International Sanctions**: The call for boycotts and sanctions on Israel is echoed globally, with activists targeting multinational corporations supporting Israel, impacting their sales and stock values.
- 🏗️ **Rebuilding Ukraine**: The US and allies seek to hold Russia financially accountable for the invasion of Ukraine, with proposals to use frozen Russian assets for reconstruction.
- 🚨 **Russian Retaliation Threat**: Moscow warns of retaliatory measures if its state assets are confiscated, highlighting the delicate balance of international financial power.
- 🛡️ **Legal and Moral Stands**: Divestment efforts are as much about moral stances as financial impact, aiming to influence public opinion and potentially foreign policy.
- 🚫 **TikTok Ban Threat**: US legislation targets TikTok over data privacy and security concerns, with the potential for a nationwide ban if ByteDance doesn't divest.
- 🛒 **Economic Impact on Businesses**: A ban on TikTok could affect millions of American businesses that utilize the platform for marketing, as well as the app's significant job support.
- 🌐 **Global Trade Dynamics**: The conflict's impact on global trade is significant, with shifts in investment and export focus, particularly towards China and India.
Q & A
What is the primary demand of the protesters at major American colleges regarding their universities' investments?
-The protesters demand that their universities disclose and divest from investments in companies they believe are complicit in genocide, particularly those linked with Israel's war on Gaza.
What is the total endowment fund of Columbia University, and what are the protesters' demands concerning this fund?
-Columbia University has an endowment fund of nearly $14 billion. Protesters want the university to divest from companies linked with Israel or those profiting from its war on Gaza.
How have some universities responded to student protests regarding divestment from Israel?
-Some universities have refused to divest, while others have offered to make investments in health and education in Gaza. There have also been instances of arrests and expulsions, as well as more conciliatory approaches, such as agreeing to speak with protesters.
What is the historical context of student activism targeting university endowments?
-In the 1980s, student activists successfully persuaded universities to divest from apartheid South Africa. More recently, universities have divested from fossil fuels and private prisons.
What is the potential financial impact on universities if they choose to divest from Israel?
-While the financial impact may be minimal, the moral and ethical ramifications are significant. Divestiture campaigns often become debates about moral and ethical issues, potentially influencing public opinion and American support for Israel's military activities.
What is the economic challenge faced by the boycott movement in the occupied West Bank?
-Israel's control over the economy, including water, fuel, electricity, and restrictions on imports and exports, makes it difficult for Palestinians to fully participate in a boycott. However, they aim to inflict economic losses on Israel and support local businesses.
What is the estimated financial need to rebuild Ukraine, and who is expected to bear the cost?
-The World Bank estimates that $411 billion is needed to rebuild Ukraine. The US and its allies want Moscow to pay for its invasion, and Congress has passed a bill that could allow Kiev to use some of Russia's frozen assets.
What is the potential legal repercussion for the US and its allies if they seize Russia's assets?
-Seizing Russia's assets could set a dangerous precedent, potentially leading to new lawsuits against the US and its allies for war reparations. Russia has threatened to retaliate, and there are concerns about the legality of such actions under international law.
What are the concerns surrounding TikTok's operations in the US, and what actions have been taken by the US government?
-Concerns include the potential for the Chinese government to access sensitive user data and the possibility of the app being used for misinformation and election interference. President Joe Biden signed a bill that could lead to a nationwide ban on TikTok if its Chinese owner, ByteDance, does not divest from the app.
What are the potential consequences for American businesses and jobs if TikTok is banned in the US?
-TikTok helps generate billions of dollars for over 7 million American businesses and supports more than 224,000 jobs. A ban could disrupt these economic contributions and require businesses to find alternative marketing platforms.
What are the broader implications of a potential TikTok ban on US-China relations?
-A ban could further strain US-China relations and may prompt retaliatory measures from China. It also raises questions about the precedent it sets for international technology regulation and data privacy concerns.
Outlines
📚 University Divestment and Protests Against Israel
The first paragraph discusses the issue of university funding and divestment, particularly in the United States. It highlights protests demanding educational institutions divest from Israel due to its conflict with Gaza. The narrative outlines the scope of the protests, the common demand for transparency in university investments, and the call for divestment from companies allegedly involved in human rights abuses. It also touches on the potential impact of such divestments on university finances and the broader economic implications.
💼 University Investments and Divestment Challenges
The second paragraph delves into the complexities of university investments, the due diligence process, and the potential challenges of divesting from Israel. It features insights from Melanie K.T., a professor at Harvard University, who discusses the general investment strategy managed by university boards and the outsourcing of endowment management to professional investment managers. The paragraph addresses the operational complexities of divestment, historical contexts such as the divestment from apartheid South Africa, and the current polarizing nature of the Israel-Palestine issue in the United States.
🛍️ Boycotting Israeli Products and Economic Impact
The third paragraph shifts the focus to the global call for boycotting Israeli products as a means of applying economic pressure. It discusses the challenges faced by Palestinians living under Israeli occupation and the impact of the boycott on multinational companies. The narrative also explores the economic dominance of Israel in the occupied territories and the efforts of Palestinians to support their local economy through boycotts, which indirectly affect Israeli economic control.
💵 Rebuilding Ukraine and Financial Repercussions on Russia
The fourth paragraph discusses the financial aspects of the Ukraine crisis, with a focus on the potential use of frozen Russian assets to fund rebuilding efforts. It outlines the positions of various countries, including the United States, European nations, and Russia itself, regarding the confiscation of assets. The narrative also touches on the potential legal and economic repercussions of such actions, as well as the broader concerns about setting precedents for international law and the potential impact on global trade.
🚫 TikTok Ban and its Implications for US Businesses
The fifth paragraph addresses the potential nationwide ban on TikTok in the United States if its Chinese owner, ByteDance, does not divest from the app. It highlights the concerns over data privacy and the possibility of the Chinese government accessing user information. The narrative also explores the potential legal challenges to the ban, the political context surrounding the issue, and the impact on small businesses and the broader economy that rely on TikTok for marketing and revenue.
🤝 Potential Buyers for TikTok and its Global Market
The sixth paragraph speculates on the process and implications of a potential sale of TikTok, considering the Chinese government's control over critical technology. It discusses the financial aspects of such a sale, the impact on small businesses that use TikTok as a marketing platform, and the potential for retaliation from China. The narrative also considers the broader implications for US-China relations and the global market.
Mindmap
Keywords
💡Divestment
💡Endowment
💡Sanctions
💡Algorithm
💡Privacy
💡Retaliate
💡Propaganda
💡Invasion
💡Ban
💡Economy
Highlights
Protests at major American universities demand divestment from Israel, citing complicity in Gaza conflict.
Protests spread to Europe, echoing global calls for divestment from Israel.
Universities manage vast endowments, investing billions across various sectors.
Divestment campaigns historically successful, like those against apartheid South Africa.
Divestment from Israel faces challenges due to political polarization and donor interests.
Financial impact on universities concerning, as divestment may affect endowment values and returns.
Divestment aims to exert moral pressure on Israel's policies rather than just financial consequences.
Palestinian call for boycott and sanctions against Israel faces challenges due to economic dependence.
US and allies seek to make Russia financially accountable for Ukraine invasion.
Potential repercussions on global trade if EU and US impose sanctions on Russia.
Legal and economic complexities in seizing Russian assets prompt concerns in European countries.
Sanctions against Russia have not significantly impacted its economy, indicating resilience.
US legislation threatens to ban TikTok unless its Chinese owner divests, citing data privacy concerns.
TikTok's ban could disrupt its largest market, impacting American businesses and jobs.
Uncertainty surrounds potential Chinese retaliation if TikTok ban is implemented.
Transcripts
[Music]
[Music]
hello I'm n Barker this is counting the
costs on aler your weekly look at the
world of business and economics this
week calling University funding into
question protesters mainly in the US
demand their schools divest from Israel
for its war on Gaza so how do they make
their
money who should rebuild Ukraine the US
moves to make Russia pay for its
Invasion Moscow threatens to retaliate
if billions of its state assets are
confiscated sell Tik Tok or face a ban
the US is cracking down on the app's
Chinese owner bik down so how will it
and millions of American businesses be
affected
now from Columbia University in New York
to the University of Southern California
in Los Angeles protests against Israel's
war on Gaza spread across major American
colleges protesters demands vary in
scope from school to school but there is
one common message disclose and divest
students want their universities to be
more transparent about where their
school's money is going and demand these
institutions abandon a range of
investments in companies they say
complicit in genocide so does divestment
work we'll discuss that with our guests
shortly but first um Kum Sharif
reports a chant that's become an Anthem
at major colleges in the United
States students from campuses in the
east coast to the West have United their
voice against Israel's war on Gaza
that's killed nearly 35,000 Palestinians
since October at Columbia University in
New York where protests began more than
2 weeks ago there are calls for
divestment from
Israel the Ivy League school has an
endowment fund of nearly $14
billion protesters want the institution
to stise with companies linked with
Israel or are profiting from its war on
Gaza they include Tech giants like
Google and Microsoft defense companies
like lhe Martin and investment firm
black among others this is not a matter
of Simply violating University rules
this is a movement an anti-war
movement the university has so far
refused to divest from Israel but
offered to make investments in health
and education in
Gaza students reacted by taking over a
campus Building the police were called
in to clear them
[Applause]
out demonstrations have spread to
several colleges in the US with similar
calls to disclose and
divest at Harvard the richest University
in the US with an endowment fund of more
than $50 billion protesting students
wanted to reinvest resources in
Palestinian academic initiatives
communities and culture and at
University of Southern California
they've called for the school to end its
study abroad programs in Israel
Palestine hundreds of students and
several teachers have been arrested
across the country but protesters say
they will not stop the instances of
brutal State violence go to show that
our universities are scared and that is
why they're overreacting with violence
because they know the students have the
power they know the students across the
country are united for
divestment from campuses in the US
protests have spread to several colleges
in Europe
for months now global Mass
demonstrations have been calling for a
ceasefire from the streets the chants
are echoing in campuses the world over
with calls to divest from Israel omum
Sharif aler for counting the
cost so how do universities make their
money will they rely on tax exempt
donations that run into billions of
dollars to fund things like scholarships
research and even staff salaries the
National Association of college and
university business officers says at
least 700 institutions hold nearly 840
billion in endowment assets colleges and
universities invest this money across
financial markets and stocks hedge funds
businesses and real estate protesting
students want their universities to
withdraw or divest their endowments from
Israeli companies and businesses that
profit from Israel's war on Gaza they
want the money to be reallocated to more
ethical investment Ventures which in
turn can pressure a company or
government to change policies and
there's a history of student activists
targeting endowments during
demonstrations in the 1980s they
successfully persuaded universities to
divest from aparte South Africa and more
recently universities have divested from
fossil fuels and private prisons well
joining us from New York is Melanie KT
she's a professor and director of the
Weatherhead Center for intern Affairs at
Harvard University a very very warm
welcome to you thanks for joining us
when it comes to these Investments the
buying of stocks and shares how much due
diligence do universities across the
United States do before they spend their
cash before they invest their money well
um they uh usually Boards of
universities corporations of
universities are in charge of
establishing the general investment
strategy so they can instruct their
investment manager
uh what to invest in in Broad terms or
what to avoid uh but most of the time
University boards Outsource the
management of University endowments
University funds to professional
investment managers so they're not in
the weeds of exactly what is going on as
as I said they can adopt broad
principles of what they do and do not
want to invest in but they're not
necessarily deeply involved in what
choices are made for specific ific
assets to be invested in in that respect
practically how easy is it then for
universities to divest from
Israel I mean it's certainly possible uh
but uh but it's not easy in in the sense
of turning around immediately first of
all this is taking uh for under the
assumption that this is a choice that
universities would make and that choice
itself I think is going to be a
complicated one because of the
polarizing nature of this issue in the
United States but let's say that add
that decision was adopted it is
operationally complex because it's
difficult to get the micro level data to
know uh what exactly is in investment
portfolios but it's not impossible it
just would take some work and it would
not be a fast turnaround decision now
we've seen the success of divestment in
the past particularly when it comes to
uh aparte South Africa what is different
this time around do you think yeah so
this is a much more polarizing issue at
present now let me emphasize that South
Africa was not a done deal from the
beginning this is a a campaign that took
years and years in the making to come to
fruition so these kinds of divestment
campaigns can work but they often don't
work overnight now the question of
Israel Palestine is particularly
polarizing uh in the United States and
so I think this is a very tall order
it's more complicated as well because
you have a lot of congressional uh
intervention here as we know from what's
going on uh regarding Israel uh and the
campus uh dramas that are playing out
right now um there's also donor interest
in Israel as well donors that are major
contributors to American
institutions uh and so so this makes it
all the more complex this issue uh it's
more polarizing than let's say climate
change or tobacco has been these kinds
of public health issues that have uh
guided investment and divestment
decisions on University campuses what
about the potential Financial impact on
places of learning universities across
the us because students have potentially
been expelled or simply put off wanting
to study at these kind of Institutions
because of the handling of all of this
so
well this is a really uh challenging
issue right now in the United States and
what's What's um interesting if you look
across the landscape of universities
where these protests are playing out
University administrations have adopted
radically different approaches uh
ranging from arrests and expulsions and
so forth as you mentioned there are a
couple of universities that have adopted
a more conciliatory approach and have
agreed to actually speak with protesters
like for example Brown University or
Northwestern University so there's a
Divergence of approaches here um but
there's definitely a cross the board
concerns about divestment and
universities are very worried about
drops in their endowment values and on
the returns from endowments and so this
is a major concern that divestment will
affect the value of endowment payouts of
course uh behind all of this is a desire
to direct Israel to shape its foreign
policy to have an influence on the next
decisions that it makes in regards to
the war in Gaza how much do you think
will divver actually impact
Israel so my sense is that financially
it will have a minimal effect but this
is not necessarily about the financial
ramifications of divestment it's more
about the moral ramifications and so
divestment uh is as much an ethical
moral campaign as it is a financial
campaign and I think that's where the
impact promises to be more profound
because of causes that that are at the
center of divestment campaigns are
causes that become debates about moral
and ethical issues and so I think this
is the real issue is what's the impact
of divestment campaigns on public
opinion around the American relationship
with Israel and particularly support for
Israel's military activities all right
Melanie K great to have you on counter
the
coast great thank you so
much now the war on Gaza has led to
renewed calls to boycott Israeli
products for years Palestinians have
urged International sanctions to be
imposed in order to pressure Israel to
end its occupation but for many in the
occupied West Bank Israel's strangle
hold on the economy is a major obstacle
for the boycott movement Nita Ibrahim
has more from
Bethlehem around the world people are
echoing Palestinian calls to boycott and
sanction Israel activists WI in the
focus after the war on Gaza and are now
targeting multinational companies that
chose support to
Israel
Dr the sales of McDonald's and Starbucks
amongst others have declined and their
stocks took a hit but in the occupied
territory Israel dominates the economy
this leaves Palestinians with little to
no free choice when it comes to spending
their money me boycott is one way of
resisting the Israeli occupation yes we
can't fully boycott because they control
our water fuel and electricity but if I
can inflict 35% losses instead of 100%
then I will it's hard to measure the
losses from the boycott campaign but it
boosted Palestinian businesses like this
soda Factory soon these cans will make
their way to Jordan where boycott of
Israel has been
growing Israel controls our Import and
Export and they often impose heavy fines
and taxes on our raw materials we know
it's because they don't want
Palestinians to have factories and an
independent economy Palestinians do not
control their borders so all exports and
imports are subjected to Israel's
restrictions bans and
closures these restrictions have forced
the First Palestinian mushroom company
to shut down it was open to challenge
the Israeli domination of the market Sal
Hai is a founder of the company and an
activist in the boycott campaign what
part Israel tries to do is is break uh
the Palestinians um dominate um the
Palestinians and that includes keeping
them at a disadvantage uh economically
uh so to keep the economy under control
to force their own economy uh on you
products so on but the Israeli
authorities have little control over
homemade products like these this is a
local initiative to support small scale
projects making handmade soap crafts and
food for many boycotting Israeli
products also gives people the
opportunity to support small projects
any money that does not go to Israel
they say well instead help support a
Palestinian family survive the difficult
economic conditions nid ibraim Al jaaz
the occupied West Bank Palestine
according to the World Bank $411 billion
is needed to rebuild Ukraine the US and
its allies want Moscow to pay for its
Invasion Congress has passed a bill that
could allow Kiev to use some of Russia's
frozen assets Western Nations frow $300
billion do in Russian foreign Holdings
at the start of the conflict most of
that money is held in European financial
institutions the Kremlin has now
threatened to retaliate if its assets
are confiscated well Russia's R State
News Agency says the West stands to lose
assets worth
$288 billion if it's frozen funds are
seized according to Ria the top
investors in the Russian economy include
Cyprus with more than $98 billion the
Netherlands with 50 billion and the UK
with nearly $19 billion it also reports
that Germany has $17 billion invested
France $16 billion and Italy almost 13
billion Germany has pushed back on the
plan to use frozen Russian assets it
fears it could set a precedent and lead
to new lawsuits against the country for
World War II crimes Berlin has paid 90
billion in payments as compensation to
Holocaust Survivors and their families
the US roughly has $5 billion in Russian
assets and is unlikely to seize them
without the agreement of the Group of
Seven Nations and the European Union the
issue will be discussed at the upcoming
G 7 Summit in Italy in June well joining
us now from Brussels is Theresa Fallon
she's the director of the center for
Russia Europe and Asian studies and is a
senior fellow at the Chicago Council on
global Affairs are very warm welcome to
counting the cost so the US very much
going it alone with these measures
against Russia how are they being viewed
there in Europe and is the EU likely to
follow
suit well inside the US there's even
consternation about this some legal
Scholars would argue that this move is
unlawful nevertheless it could set
dangerous precedents for other us allies
for example Israel from the European
perspective uh as you noted Germany is
very concerned about war reparations
that Poland and Greece routinely ask for
and Japan which is part of the G7 is
also concerned how South Korea would ask
for war reparations so this uh could
just be one way of bringing Russia to
the negotiating table it's difficult at
this moment to know how much of it is
carrot and how much of it is stick of
course Russia has several potential
levers to pull itself as well given as
we mentioned in the introduction there
how much European money is deep in to
the Russian economy what are the
repercussions of uh Russia hitting back
for the EU and the Euro Zone they have
been seizing assets from various
companies and others are quietly
contining to uh do work in Russia so
they want to preserve their already
existing Investments we saw at the
beginning of the war the oil industry
just pulled out and left like 25 billion
on the table so they understood that
this might be a long-term War whereas
some middle standand companies from
Germany and Italy is also are very
deeply concerned about their Enterprises
so this is a lever that can be used by
Russia to kind of divide and conquer
European opinion on this this will be I
I imagine that there will be some sort
of compromise agreement worked out at
the G7 can Russia in any way push back
legally against this attempt to make the
country pay for the invasion pay for the
ongoing conflict in
Ukraine it is UN unprecedented in
international law so there are some
legal questions and if we start pulling
on some of the tapestry of international
legal agreements the whole thing might
unravel so Russia has complained that
this is a form of uh International
piracy and they they really thought that
by parking a lot of their assets abroad
that they would be safe so this is also
being watched very closely and carefully
by Beijing uh who is also trying to
learn ways to to protect their assets
should uh any cross straight crisis with
Taiwan blow up into conflict you
mentioned Beijing there because one of
the things noticed since the start of
the conflict is the direction that
Moscow is now looking when it turn when
it comes to its Investments and increase
in export looking very much to China
looking very much to India I wonder what
happens to global trade should the wrong
levers be pulled too soon perhaps by the
EU and by the United
States I think Europe is very
apprehensive they have made it very
clear they're not going to do anything
this year on this that they might
consider in 2025 so they're kind of
crossing the river by feeling the stones
to see how this will move I think the US
is trying to kind of pull them along by
by passing this legislation but it's
unclear what action the US will take
right now I think they are trying to
pull other countries within to influence
them but uh there's also demands by
central eastern European leaders fearful
that with a new Trump Administration
should he win the ele the US election uh
that all bets are off so Putin is
gambling that Trump will be reelected
and that he'll have a a better outcome
so there's a time element involved in
all of this as well so I think there's a
big gamble going on here Putin will see
how he plays plays it out if he can
spend this as long as possible with the
Europeans waiting to see how the
election turns out as well so they're
not willing to stick their neck out
either as your as you noted in your
earlyer uh programming that the most of
the Russian assets are parked throughout
Europe so that Europe really has a lot
at stake here the US has only about 5 to
six billion now despite close to 177,000
individual sanctions against Russia
imposed by the US and partner countries
despite an exodus of hundreds of major
International companies McDonald's Ikea
to name a few the international monetary
fund expects Russia's economy
nevertheless to to grow in
2024 um almost double that of what the
United Kingdom is expected to achieve
sanctions appear not to have really hit
their Mark in Moscow have
they exactly and we've seen uh
incredible ability of Russia to get
around sanctions we've seen increases uh
for example 300% exports from Kazakhstan
and Armenia for example so countries
companies are are finding roots
to get around sanctions so this is going
to be a big issue this also sends a
positive message to Beijing that propos
sanctions or promise sanctions should
they do anything might not really be as
watertight as as they might have uh
expected prior to their observed
experience of what Russia has gone
through so there's a will there's a way
and we've also seen a lot of you know
Russia has uh oil that they've been able
to export in a gry Zone way which is
actually quite dangerous for the
environment there's a lot of leakage but
they've had a lot of money coming in
from that and they're they're backed by
China they have a lot of increased trade
with China China has been filling that
Gap and there are questions about how
much China is actually aiding Russia uh
base for keeping up the the war in
Ukraine all right Teresa Fallon great to
have you on counting the cost thank
you thank you sell up or vanish from
American stores President Joe Biden has
signed a bill that could lead to a
Nationwide ban on Tik Tok if it's
Chinese owner bite does doesn't divest
from the app but the deadline is in
about a year's time that's after the
2024 election politicians are worried
Tik Tok may share sensitive user data
with the Chinese government the company
has always denied the allegations and
says it will challenge what it calls an
unconstitutional law in court well the
stakes are high for Tik Tok losing its
biggest Market with 170 million users
the video sharing app helps generate
billions of dollars for more than 7
million American businesses and supports
more than 224,000 jobs the legal battle
could take months or years to settle
meanwhile Tik Tok will likely still be
available in the US India banned Tik Tok
in 2020 while other countries including
Britain Australia Canada and France have
blocked It On official devices we'll
discuss all of this joining me now from
Berlin is Frederica Cuna she's a tech
policy expert a very warm welcome to you
so let me start by asking you this was
the uh us or is the US right about its
fears surrounding Tik Tock and his
parent company bite dance I think the
fears are correct the response raises
some really serious questions and
consider that precedent so there are
basically two main concerns about Tik
Tok the first one is like any other
social media app Tik Tok collects vast
amounts of data and the fear is that
because the Chinese government has a lot
of influence over companies in its
territory like bite dance the fear is
that the Chinese government could access
data on over 170 million us Americans so
that's the Privacy fear the second fear
is about manipulation and interference
Tik Tok is so popular because its
algorithm is really good at recommending
content it's very hard to see from the
outset how and why content is
recommended and how content is being
moderated again the American fear here
is that this means that the app could be
influenced by the Chinese government to
uh spread misinformation for censorship
and to influence the elections so those
are the concerns however there are many
things the US government could do
instead of bending the app
wholesale if the ban does go into force
it won't be for at least N9 months time
and the assumption is that there may
well be some legal push back from Tik
Tock and its parent company bite dance
as well it does beg the question
therefore is this purely a political
move especially as one former US
president Donald Trump seemed keen on
Banning Tik Tok too I don't think this
is a purely political move there seems
to be a bipartisan support or bipartisan
concern about Tik Tok Trump tried to ban
the app Trump tried to ban the app when
he was in office it failed due to a
legal challenge now this is the second
attempt at Banning the app uh we will
expect legal challenges coming from Tik
Tok who claim that a ban um violates the
First
Amendment so I don't think it's cynical
they're real concerns it's still a very
bold move to just ban an entire app when
the United States for instance could
Implement a comprehensive data Privacy
Law that currently doesn't exist the us
could Implement a platform law or
platform regulation such as the European
Union has that would force all social
media apps including Tik Tok to be much
much more transparent about how they
operate Microsoft Oracle even Walmart
have been flagged as potential buyers of
Tik Tok how do you go about buying a
company like this and how much does it
even
cost I think first of all the question
is would by Den even want to sell Tik
Tock so the Chinese government passed a
law uh that means the government has to
agree to any purchase of critical
technology and Tik Tok and its algorithm
have been deemed critical so the first
question is would the Chinese government
even agree to a sell of Tik Tok the
second one is the price tag uh Tik Tok
the US is Tik tok's largest market I
already said 170 million users last year
the financial times reported 16 billion
in sale there are very few American
companies that could even afford a
purchase of of an app like Tik Tok given
the number of users in the United States
and indeed globally it does beg the
question what sort of impact a ban on
Tik Tok there would have on small
businesses for instance that use Tik Tok
as a really important marketing tool for
instance well we've seen from other
countries uh India has banned Tik Tok a
few years ago we've seen that small
businesses influencers uh moved onto
other platforms not all people who have
a large following on Tik Tok have the
same following let's say on Instagram or
on other apps so there's a question
whether some people lose out in this
move but we've generally seen that
people shift to other apps uh when an
app gets bent is there any scope here
also is there any scope here sorry to
interrupt for China to potentially
retaliate if uh this ban goes ahead a
lot of CH a lot of American apps are
already banned in China I think it's
definitely not a positive a step towards
good us Chinese
relationships okay Frederica Cuna great
to have you on counting the cost many
thanks thank
you well that's our show for this week
get in touch with us on X formally known
as Twitter at Neeve Barker and do use
the hash AJ CC when you do or drop us an
email counting the cost at al.net is our
address where there's more for you
online at aljazera / ccounting the cost
that'll take you straight to our page
which has individual reports links an
entire episodes for you to catch up on
well that's it for this edition of
counting the cost I'm NE Barker and from
the whole team thanks for joining us the
news is next here on aler
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