I 

117TH CONGRESS 

1ST SESSION H. R. 3057 

To require ByteDance to divest itself of certain assets, and to require the 

Committee on Foreign Investment in the United States to review certain 

business relationships between ByteDance and United States businesses, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2021 

Mrs. MCCLAIN (for herself, Mr. BANKS, Mr. WILSON of South Carolina, Ms. 

HERRELL, Mr. NORMAN, Mr. VAN DREW, Mr. GOODEN of Texas, Mr. 

STEUBE, and Mrs. CAMMACK) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the 

Committees on Foreign Affairs, and Energy and Commerce, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To require ByteDance to divest itself of certain assets, and 

to require the Committee on Foreign Investment in the 

United States to review certain business relationships 

between ByteDance and United States businesses, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Anti-CCP Espionage 

3 via Social Media Act of 2021’’ or the ‘‘ACES Act of 

4 2021’’. 

5 SEC. 2. FINDINGS. 

6 Congress makes the following findings: 

7 (1) TikTok engages in political censorship, in8 cluding related to awareness of Uighur Muslim in9 ternment camps in China. 

10 (2) The U.S. government fined TikTok $5.7 

11 million for illegally collecting children’s data. 

12 (3) TikTok’s Chinese parent company 

13 ByteDance has agreed to pay $92 million in a settle14 ment to U.S. users who are part of a class-action 

15 lawsuit alleging that the video-sharing app failed to 

16 get their consent to collect data in violation of a 

17 strict Illinois biometric privacy law. 

18 (4) Chinese companies, such as TikTok, have 

19 no meaningful ability to tell the Chinese Communist 

20 Party ‘‘no’’ if officials request user data. 

21 (5) The presence of Chinese surveillance in ap22 plications such as TikTok raises U.S. national secu23 rity concerns. 

24 SEC. 3. STATEMENT OF POLICY. 

25 It is the policy of the United States to secure the 

26 information and communications technology and services 


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1 supply chain and to counter the threat posed by mobile 

2 applications and software services developed and owned by 

3 foreign adversaries, specifically the People’s Republic of 

4 China and the Chinese Communist Party, which continue 

5 to threaten the national security, foreign policy, and econ6 omy of the United States. 

7 SEC. 4. CODIFICATION OF THE EXECUTIVE ORDER AD8 DRESSING THE THREAT POSED BY TIKTOK. 

9 (a) Executive Order 13942 of August 6, 2020 as in 

10 effect as of January 19, 2021, shall remain in effect and 

11 continue to apply. 

12 (b) Notwithstanding section 203(b) of the Inter13 national Emergency Economic Powers Act, the President 

14 shall have the authority to implement Executive Order 

15 13942. 

16 SEC. 5. DIVESTMENT OF ASSETS BY BYTEDANCE. 

17 (a) IN GENERAL.—ByteDance shall divest itself of— 

18 (1) any tangible or intangible assets or prop19 erty, wherever located, used to enable or support 

20 ByteDance’s operation of the TikTok application in 

21 the United States, as determined by CFIUS; and 

22 (2) any data obtained or derived from TikTok 

23 application or Musical.ly application users in the 

24 United States. 

25 (b) DEADLINE.— 


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1 (1) IN GENERAL.—Subject to paragraph (2), 

2 ByteDance shall complete the divestment of assets 

3 required under subsection (a) before the end of the 

4 90-day period beginning on the date of enactment of 

5 this Act. 

6 (2) EXTENSIONS.—CFIUS may provide one or 

7 more 30-day extensions with respect to the deadline 

8 described under paragraph (1), but under no cir9 cumstances may such extensions extend the deadline 

10 beyond the end of the 12-month period beginning on 

11 the date of enactment of this Act. 

12 (3) PROGRESS REPORT.—Not later than the 

13 end of the 45-day period beginning on the date of 

14 enactment of this Act, ByteDance shall provide evi15 dence to the President that ByteDance is in the 

16 process of divesting itself of all assets described 

17 under subsection (a). 

18 (c) CERTIFICATIONS AND AUDITS.— 

19 (1) WEEKLY CERTIFICATION.—Until 

20 ByteDance provides the certification under para21 graph (2)(A), ByteDance and TikTok shall certify to 

22 CFIUS on a weekly basis that they are in compli23 ance with this Act and ByteDance shall include a 

24 description of efforts to make divestment required 

25 under this section and a timeline for projected comVerDate Sep 11 2014 01:02 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3057.IH H3057

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1 pletion of remaining actions necessary to complete 

2 such divestment. 

3 (2) DATA DESTRUCTION CERTIFICATION AND

4 AUDIT.—After the deadline described under sub5 section (b)(1)— 

6 (A) ByteDance shall certify in writing to 

7 CFIUS that ByteDance has destroyed all data 

8 that ByteDance is required to divest pursuant 

9 to this section, including all copies of such data 

10 wherever located; and 

11 (B) CFIUS may audit ByteDance, on such 

12 terms as CFIUS determines appropriate, in 

13 order to ensure that such destruction of data is 

14 complete. 

15 (d) LIMITATION ON DIVESTMENTS.— 

16 (1) IN GENERAL.—In carrying out a divestment 

17 required under this section, ByteDance may not 

18 complete a sale or transfer to any third party— 

19 (A) until ByteDance notifies CFIUS in 

20 writing of the intended recipient or buyer; and 

21 (B) unless 10 business days have passed 

22 from such notification and CFIUS has not 

23 issued an objection to ByteDance. 


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1 (2) CFIUS CONSIDERATIONS.—Among the fac2 tors CFIUS may consider in reviewing a proposed 

3 sale or transfer described under paragraph (1) are— 

4 (A) whether the buyer or transferee— 

5 (i) is a U.S. citizen or is owned by 

6 U.S. citizens; 

7 (ii) has or has had a direct or indirect 

8 contractual, financial, familial, employ9 ment, or other close and continuous rela10 tionship with ByteDance, or its officers, 

11 employees, or shareholders; and 

12 (iii) can demonstrate a willingness 

13 and ability to support compliance with this 

14 Act; and 

15 (B) whether the proposed sale or transfer 

16 would threaten to impair the national security 

17 of the United States or undermine the purpose 

18 of this Act, and whether the sale effectuates, to 

19 CFIUS’s satisfaction and in CFIUS’s discre20 tion, a complete divestment of all tangible or in21 tangible assets or property, wherever located, 

22 used to enable or support the operation of the 

23 TikTok application in the United States. 

24 (e) CFIUS VERIFICATION MEASURES.— 


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1 (1) IN GENERAL.—Without limitation on the 

2 exercise of authority by any agency under other pro3 visions of law, and until such time as the divestment 

4 required under this section is completed and verified 

5 to the satisfaction of CFIUS, CFIUS is authorized 

6 to implement measures CFIUS determines necessary 

7 and appropriate to verify compliance with this sec8 tion and to ensure that the operations of the TikTok 

9 application are carried out in such a manner as to 

10 ensure protection of the national security interests of 

11 the United States. Such measures may include, on 

12 reasonable notice to ByteDance and TikTok Inc., 

13 employees of the United States Government, as des14 ignated by CFIUS, shall be permitted access, for 

15 purposes of verifying compliance with this section, to 

16 all premises and facilities of ByteDance and TikTok 

17 Inc., and any of their respective subsidiaries, oper18 ated in furtherance of the TikTok application lo19 cated in the United States— 

20 (A) to inspect and copy any books, ledgers, 

21 accounts, correspondence, memoranda, and 

22 other records and documents in the possession 

23 or under the control of ByteDance or TikTok 

24 Inc., or any of their respective subsidiaries, that 

25 concern any matter relating to this section; 


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1 (B) to inspect or audit any information 

2 systems, networks, hardware, software, data, 

3 communications, or property in the possession 

4 or under the control of ByteDance or TikTok 

5 Inc., or any of their respective subsidiaries; and 

6 (C) to interview officers, employees, or 

7 agents of ByteDance or TikTok Inc., or any of 

8 their respective subsidiaries, concerning any 

9 matter relating to this section. 

10 (2) DEADLINE FOR VERIFICATION.— CFIUS 

11 shall conclude all verification procedures described 

12 under this subsection within 90 days after the cer13 tification of divestment is provided to CFIUS pursu14 ant to subsection (c)(1). 

15 SEC. 6. PROHIBITED TRANSACTIONS. 

16 (a) IN GENERAL.—A transaction is prohibited if the 

17 transaction is by any person, or with respect to any prop18 erty, subject to the jurisdiction of the United States, with 

19 ByteDance Ltd. (a.k.a. Z(‘jie′ Tia‘odo‘ng), Beijing, 

20 China, or its subsidiaries, including TikTok Inc., in which 

21 any such company has any interest, involving the fol22 lowing: 

23 (1) Any provision of services, occurring after 

24 the end of the 45-day period beginning on the date 

25 of enactment of this Act, to distribute or maintain 


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1 the TikTok mobile application, constituent code, or 

2 application updates through an online mobile appli3 cation store, or any online marketplace where mobile 

4 users within the land or maritime borders of the 

5 United States and its territories may download or 

6 update applications for use on their mobile devices. 

7 (2) Any provision of internet hosting services, 

8 occurring after the end of the 45-day period begin9 ning on the date of enactment of this Act, enabling 

10 the functioning or optimization of the TikTok mobile 

11 application within the land and maritime borders of 

12 the United States and its territories. 

13 (3) Any provision of content delivery network 

14 services, occurring after the end of the 45-day period 

15 beginning on the date of enactment of this Act, ena16 bling the functioning or optimization of the TikTok 

17 mobile application within the land and maritime bor18 ders of the United States and its territories. 

19 (4) Any provision of directly contracted or ar20 ranged internet transit or peering services, occurring 

21 after the end of the 45-day period beginning on the 

22 date of enactment of this Act, enabling the func23 tioning or optimization of the TikTok mobile appli24 cation within the land and maritime borders of the 

25 United States and its territories. 


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1 (5) Any utilization, occurring after the end of 

2 the 45-day period beginning on the date of enact3 ment of this Act, of the TikTok mobile application’s 

4 constituent code, functions, or services in the func5 tioning of software or services developed or acces6 sible within the land and maritime borders of the 

7 United States and its territories. 

8 (b) EXCEPTIONS.—The prohibition under subsection 

9 (a) shall not apply to the following: 

10 (1) Any transaction that is not a business-to11 business transactions. 

12 (2) The payment of wages, salaries, and benefit 

13 packages to employees or contractors. 

14 (3) The exchange between or among TikTok 

15 mobile application users of personal or business in16 formation using the TikTok mobile application. 

17 (4) Activities related to mobile applications in18 tended for distribution, installation or use outside of 

19 the United States by any person, including to any 

20 person subject to U.S. jurisdiction, and all ancillary 

21 activities, including activities performed by any U.S. 

22 person, which are ordinarily incident to, and nec23 essary for, the distribution, installation, and use of 

24 mobile applications outside of the United States. 


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1 (5) The storing of TikTok mobile application 

2 user data in the United States. 

3 (6) Any transactions necessary to effectuate the 

4 divestment required by this section. 

5 (c) WAIVER.—A person may submit a request to 

6 CFIUS for a waiver of the requirements under subsection 

7 (a). 

8 SEC. 7. ENFORCEMENT. 

9 (a) PROHIBITION ON EVASION AND CIRCUMVEN10 TION.—Any transaction or other device entered into or 

11 employed for the purpose of, or with the effect of, evading 

12 or circumventing this Act is prohibited. 

13 (b) INJUNCTION.—Whenever it appears to the Attor14 ney General that any person is engaged in, or is about 

15 to engage in, any act that constitutes, or would constitute, 

16 a violation of this Act, the Attorney General may initiate 

17 civil action in a district court of the United States to en18 join such violation. 

19 (c) PENALTIES.— 

20 (1) MATERIAL MISSTATEMENT OR OMISSION.— 

21 Any person who submits a report with a material 

22 misstatement or omission or makes a false certifi23 cation under this Act may be liable to the United 

24 States for a civil penalty not to exceed $250,000 per 

25 violation. The amount of the penalty imposed for a 


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1 violation shall be based on the nature of the viola2 tion. 

3 (2) VIOLATIONS.— 

4 (A) IN GENERAL.—Any person who fails to 

5 comply with the requirements of this Act may 

6 be liable to the United States for a civil penalty 

7 not to exceed the greater of $250,000 or the 

8 value of the transaction. 

9 (B) AMOUNT.—The amount of a penalty 

10 imposed for a violation shall be based on the 

11 nature of the violation. 

12 (3) DETERMINATION AND NOTICE OF PEN13 ALTY.—A determination to impose penalties under 

14 paragraph (1) or (2) shall be made by CFIUS. No15 tice of the penalty, including a written explanation 

16 of the conduct to be penalized and the amount of the 

17 penalty, shall be sent to the subject person electroni18 cally and by U.S. mail or courier service. Notice 

19 shall be deemed to have been effected by the earlier 

20 of the date of electronic transmission and the date 

21 of receipt of U.S. mail or courier service. 

22 (4) PETITION FOR RECONSIDERATION.—Upon 

23 receiving notice of a penalty to be imposed under 

24 paragraph (1) or (2), the subject person may, within 

25 15 business days of receipt of such notice, submit a 


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1 petition for reconsideration to the Staff Chairperson, 

2 including a defense, justification, or explanation for 

3 the conduct to be penalized. CFIUS shall review the 

4 petition and issue any final penalty determination 

5 within 15 business days of receipt of the petition. 

6 The Staff Chairperson and the subject person may 

7 extend either such period through written agree8 ment. CFIUS and the subject person may reach an 

9 agreement on an appropriate remedy at any time be10 fore CFIUS issues any final penalty determination. 

11 (5) RECOVERY OF PENALTIES.—The penalties 

12 authorized in paragraphs (1) and (2) may be recov13 ered in a civil action brought by the United States 

14 in Federal district court. 

15 (6) APPLICATION OF FALSE STATEMENTS AC16 COUNTABILITY ACT OF 1996.—Section 2 of the False 

17 Statements Accountability Act of 1996 (18 U.S.C. 

18 1001) shall apply to all information provided to 

19 CFIUS or the President under this Act. 

20 (7) EFFECT ON OTHER PENALTIES.—The pen21 alties available under this subsection are without 

22 prejudice to other penalties, civil or criminal, avail23 able under law. 

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1 alty under this subsection creates a debt due to the 

2 U.S. Government. The Department of the Treasury 

3 may take action to collect the penalty assessed if not 

4 paid within the time prescribed by CFIUS and noti5 fied to the applicable party or parties. In addition or 

6 instead, the matter may be referred to the Depart7 ment of Justice for appropriate action to recover the 

8 penalty. 

9 (9) DEFINITIONS.—In this subsection: 

10 (A) STAFF CHAIRPERSON.—The term 

11 ‘‘Staff Chairperson’’ means the Department of 

12 the Treasury official so designated by the Sec13 retary of the Treasury or by the Secretary’s 

14 designee. 

15 (B) SUBJECT PERSON.—In this subsection, 

16 the term ‘‘subject person’’ means the person or 

17 persons who may be liable to the United States 

18 for a civil penalty. 

19 SEC. 8. NATIONAL SECURITY REVIEW OF BUSINESS RELA20 TIONSHIPS WITH BYTEDANCE. 

21 (a) NATIONAL SECURITY INVESTIGATIONS.— 

22 (1) IN GENERAL.—CFIUS shall— 

23 (A) review the relationship of each covered 

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1 termine the effects of such relationship on the 

2 national security of the United States; and 

3 (B) issue a report to the President con4 taining the findings of such review. 

5 (2) PRESIDENTIAL AUTHORITY.—After review6 ing a report issued under paragraph (1) with respect 

7 to a relationship, the President may take such action 

8 for such time as the President considers appropriate 

9 to suspend or prohibit the relationship if the rela10 tionship threatens to impair the national security of 

11 the United States. 

12 (3) PROCEDURES.—To the extent practicable, 

13 CFIUS and the President shall carry out a review 

14 of a relationship under this subsection in the same 

15 manner as a covered transaction is reviewed under 

16 section 721 of the Defense Production Act of 1950 

17 (50 U.S.C. 4565). 

18 SEC. 9. REPORT ON NATIONAL SECURITY THREAT OF MO19 BILE APPLICATIONS UTILIZED BY THE PEO20 PLE’S REPUBLIC OF CHINA AND CHINESE 

21 COMMUNIST PARTY. 

22 (a) REPORTING REQUIREMENT.—Not later than 180 

23 days after the enactment of this Act, and annually there24 after, the Secretary of State and the Attorney General, 

25 in consultation with the Director of National Intelligence, 


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1 shall submit to the appropriate congressional committees 

2 a report describing— 

3 (1) the scope of efforts by the People’s Republic 

4 of China and Chinese Communist Party to utilize 

5 mobile applications to perform espionage on U.S. 

6 citizens, and business and organizations located in 

7 the United States; 

8 (2) the means and objectives of the People’s 

9 Republic of China and Chinese Communist Party in 

10 utilizing mobile applications to perform espionage 

11 and spread disinformation in the United States; and 

12 (3) a detailed strategy regarding how the Sec13 retary of State and the Attorney General intend to 

14 counter espionage and disinformation efforts con15 ducted by the People’s Republic of China and the 

16 Chinese Communist Party using mobile applications. 

17 (b) FORM.—The report required by subsection (a) 

18 shall be submitted in unclassified form, but may include 

19 a classified annex if necessary. The unclassified portion 

20 of such report shall be made available on a publicly avail21 able internet website of the Federal Government. 

22 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE23 FINED.—In this section, the term ‘‘appropriate congres24 sional committees’’ means— 


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1 (1) the Committee on Armed Services, the 

2 Committee on Foreign Affairs, the Committee on Fi3 nancial Services, and the Committee on the Judici4 ary of the House of Representatives; and 

5 (2) the Committee on Armed Services, the 

6 Committee on Foreign Relations, the Committee on 

7 Banking, Housing, and Urban Affairs, and the Com8 mittee on the Judiciary of the Senate. 

9 SEC. 10. DEFINITIONS. 

10 In this Act: 

11 (1) CFIUS.—The term ‘‘CFIUS’’ means the 

12 Committee on Foreign Investment in the United 

13 States. 

14 (2) COVERED UNITED STATES BUSINESS.—The 

15 term ‘‘covered United States business’’ means a per16 son (other than an individual) engaged in interstate 

17 commerce in the United States who— 

18 (A) is partnering or contracting with 

19 ByteDance with respect to technology plat20 forms, applications, or other ventures; or 

21 (B) is a shareholder of ByteDance. 

Æ 


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