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 re-
ferred 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 consider-
ation 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Anti-CCP Espionage 
via Social Media Act of 2021’’ or the ‘‘ACES Act of 
2021’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) TikTok engages in political censorship, in-
cluding related to awareness of Uighur Muslim in-
ternment camps in China. 
(2) The U.S. government fined TikTok $5.7 
million for illegally collecting children’s data. 
(3) 
TikTok’s 
Chinese 
parent 
company 
ByteDance has agreed to pay $92 million in a settle-
ment to U.S. users who are part of a class-action 
lawsuit alleging that the video-sharing app failed to 
get their consent to collect data in violation of a 
strict Illinois biometric privacy law. 
(4) Chinese companies, such as TikTok, have 
no meaningful ability to tell the Chinese Communist 
Party ‘‘no’’ if officials request user data. 
(5) The presence of Chinese surveillance in ap-
plications such as TikTok raises U.S. national secu-
rity concerns. 
SEC. 3. STATEMENT OF POLICY. 
It is the policy of the United States to secure the 
information and communications technology and services 
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supply chain and to counter the threat posed by mobile 
applications and software services developed and owned by 
foreign adversaries, specifically the People’s Republic of 
China and the Chinese Communist Party, which continue 
to threaten the national security, foreign policy, and econ-
omy of the United States. 
SEC. 4. CODIFICATION OF THE EXECUTIVE ORDER AD-
DRESSING THE THREAT POSED BY TIKTOK. 
(a) Executive Order 13942 of August 6, 2020 as in 
effect as of January 19, 2021, shall remain in effect and 
continue to apply. 
(b) Notwithstanding section 203(b) of the Inter-
national Emergency Economic Powers Act, the President 
shall have the authority to implement Executive Order 
13942. 
SEC. 5. DIVESTMENT OF ASSETS BY BYTEDANCE. 
(a) IN GENERAL.—ByteDance shall divest itself of— 
(1) any tangible or intangible assets or prop-
erty, wherever located, used to enable or support 
ByteDance’s operation of the TikTok application in 
the United States, as determined by CFIUS; and 
(2) any data obtained or derived from TikTok 
application or Musical.ly application users in the 
United States. 
(b) DEADLINE.— 
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(2) CFIUS CONSIDERATIONS.—Among the fac-
tors CFIUS may consider in reviewing a proposed 
sale or transfer described under paragraph (1) are— 
(A) whether the buyer or transferee— 
(i) is a U.S. citizen or is owned by 
U.S. citizens; 
(ii) has or has had a direct or indirect 
contractual, financial, familial, employ-
ment, or other close and continuous rela-
tionship with ByteDance, or its officers, 
employees, or shareholders; and 
(iii) can demonstrate a willingness 
and ability to support compliance with this 
Act; and 
(B) whether the proposed sale or transfer 
would threaten to impair the national security 
of the United States or undermine the purpose 
of this Act, and whether the sale effectuates, to 
CFIUS’s satisfaction and in CFIUS’s discre-
tion, a complete divestment of all tangible or in-
tangible assets or property, wherever located, 
used to enable or support the operation of the 
TikTok application in the United States. 
(e) CFIUS VERIFICATION MEASURES.— 
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(1) IN GENERAL.—Without limitation on the 
exercise of authority by any agency under other pro-
visions of law, and until such time as the divestment 
required under this section is completed and verified 
to the satisfaction of CFIUS, CFIUS is authorized 
to implement measures CFIUS determines necessary 
and appropriate to verify compliance with this sec-
tion and to ensure that the operations of the TikTok 
application are carried out in such a manner as to 
ensure protection of the national security interests of 
the United States. Such measures may include, on 
reasonable notice to ByteDance and TikTok Inc., 
employees of the United States Government, as des-
ignated by CFIUS, shall be permitted access, for 
purposes of verifying compliance with this section, to 
all premises and facilities of ByteDance and TikTok 
Inc., and any of their respective subsidiaries, oper-
ated in furtherance of the TikTok application lo-
cated in the United States— 
(A) to inspect and copy any books, ledgers, 
accounts, correspondence, memoranda, and 
other records and documents in the possession 
or under the control of ByteDance or TikTok 
Inc., or any of their respective subsidiaries, that 
concern any matter relating to this section; 
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(B) to inspect or audit any information 
systems, networks, hardware, software, data, 
communications, or property in the possession 
or under the control of ByteDance or TikTok 
Inc., or any of their respective subsidiaries; and 
(C) to interview officers, employees, or 
agents of ByteDance or TikTok Inc., or any of 
their respective subsidiaries, concerning any 
matter relating to this section. 
(2) DEADLINE
FOR
VERIFICATION.— CFIUS 
shall conclude all verification procedures described 
under this subsection within 90 days after the cer-
tification of divestment is provided to CFIUS pursu-
ant to subsection (c)(1). 
SEC. 6. PROHIBITED TRANSACTIONS. 
(a) IN GENERAL.—A transaction is prohibited if the 
transaction is by any person, or with respect to any prop-
erty, subject to the jurisdiction of the United States, with 
ByteDance Ltd. (a.k.a. Z(‘jie′ Tia‘odo‘ng), Beijing, 
China, or its subsidiaries, including TikTok Inc., in which 
any such company has any interest, involving the fol-
lowing: 
(1) Any provision of services, occurring after 
the end of the 45-day period beginning on the date 
of enactment of this Act, to distribute or maintain 
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the TikTok mobile application, constituent code, or 
application updates through an online mobile appli-
cation store, or any online marketplace where mobile 
users within the land or maritime borders of the 
United States and its territories may download or 
update applications for use on their mobile devices. 
(2) Any provision of internet hosting services, 
occurring after the end of the 45-day period begin-
ning on the date of enactment of this Act, enabling 
the functioning or optimization of the TikTok mobile 
application within the land and maritime borders of 
the United States and its territories. 
(3) Any provision of content delivery network 
services, occurring after the end of the 45-day period 
beginning on the date of enactment of this Act, ena-
bling the functioning or optimization of the TikTok 
mobile application within the land and maritime bor-
ders of the United States and its territories. 
(4) Any provision of directly contracted or ar-
ranged internet transit or peering services, occurring 
after the end of the 45-day period beginning on the 
date of enactment of this Act, enabling the func-
tioning or optimization of the TikTok mobile appli-
cation within the land and maritime borders of the 
United States and its territories. 
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(5) Any utilization, occurring after the end of 
the 45-day period beginning on the date of enact-
ment of this Act, of the TikTok mobile application’s 
constituent code, functions, or services in the func-
tioning of software or services developed or acces-
sible within the land and maritime borders of the 
United States and its territories. 
(b) EXCEPTIONS.—The prohibition under subsection 
(a) shall not apply to the following: 
(1) Any transaction that is not a business-to- 
business transactions. 
(2) The payment of wages, salaries, and benefit 
packages to employees or contractors. 
(3) The exchange between or among TikTok 
mobile application users of personal or business in-
formation using the TikTok mobile application. 
(4) Activities related to mobile applications in-
tended for distribution, installation or use outside of 
the United States by any person, including to any 
person subject to U.S. jurisdiction, and all ancillary 
activities, including activities performed by any U.S. 
person, which are ordinarily incident to, and nec-
essary for, the distribution, installation, and use of 
mobile applications outside of the United States. 
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(5) The storing of TikTok mobile application 
user data in the United States. 
(6) Any transactions necessary to effectuate the 
divestment required by this section. 
(c) WAIVER.—A person may submit a request to 
CFIUS for a waiver of the requirements under subsection 
(a). 
SEC. 7. ENFORCEMENT. 
(a) PROHIBITION
ON EVASION
AND CIRCUMVEN-
TION.—Any transaction or other device entered into or 
employed for the purpose of, or with the effect of, evading 
or circumventing this Act is prohibited. 
(b) INJUNCTION.—Whenever it appears to the Attor-
ney General that any person is engaged in, or is about 
to engage in, any act that constitutes, or would constitute, 
a violation of this Act, the Attorney General may initiate 
civil action in a district court of the United States to en-
join such violation. 
(c) PENALTIES.— 
(1) MATERIAL MISSTATEMENT OR OMISSION.— 
Any person who submits a report with a material 
misstatement or omission or makes a false certifi-
cation under this Act may be liable to the United 
States for a civil penalty not to exceed $250,000 per 
violation. The amount of the penalty imposed for a 
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violation shall be based on the nature of the viola-
tion. 
(2) VIOLATIONS.— 
(A) IN GENERAL.—Any person who fails to 
comply with the requirements of this Act may 
be liable to the United States for a civil penalty 
not to exceed the greater of $250,000 or the 
value of the transaction. 
(B) AMOUNT.—The amount of a penalty 
imposed for a violation shall be based on the 
nature of the violation. 
(3) DETERMINATION
AND
NOTICE
OF
PEN-
ALTY.—A determination to impose penalties under 
paragraph (1) or (2) shall be made by CFIUS. No-
tice of the penalty, including a written explanation 
of the conduct to be penalized and the amount of the 
penalty, shall be sent to the subject person electroni-
cally and by U.S. mail or courier service. Notice 
shall be deemed to have been effected by the earlier 
of the date of electronic transmission and the date 
of receipt of U.S. mail or courier service. 
(4) PETITION FOR RECONSIDERATION.—Upon 
receiving notice of a penalty to be imposed under 
paragraph (1) or (2), the subject person may, within 
15 business days of receipt of such notice, submit a 
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petition for reconsideration to the Staff Chairperson, 
including a defense, justification, or explanation for 
the conduct to be penalized. CFIUS shall review the 
petition and issue any final penalty determination 
within 15 business days of receipt of the petition. 
The Staff Chairperson and the subject person may 
extend either such period through written agree-
ment. CFIUS and the subject person may reach an 
agreement on an appropriate remedy at any time be-
fore CFIUS issues any final penalty determination. 
(5) RECOVERY OF PENALTIES.—The penalties 
authorized in paragraphs (1) and (2) may be recov-
ered in a civil action brought by the United States 
in Federal district court. 
(6) APPLICATION OF FALSE STATEMENTS AC-
COUNTABILITY ACT OF 1996.—Section 2 of the False 
Statements Accountability Act of 1996 (18 U.S.C. 
1001) shall apply to all information provided to 
CFIUS or the President under this Act. 
(7) EFFECT ON OTHER PENALTIES.—The pen-
alties available under this subsection are without 
prejudice to other penalties, civil or criminal, avail-
able under law. 
(8) PENALTIES AS DEBT DUE TO THE U.S. GOV-
ERNMENT.—The imposition of a civil monetary pen-
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alty under this subsection creates a debt due to the 
U.S. Government. The Department of the Treasury 
may take action to collect the penalty assessed if not 
paid within the time prescribed by CFIUS and noti-
fied to the applicable party or parties. In addition or 
instead, the matter may be referred to the Depart-
ment of Justice for appropriate action to recover the 
penalty. 
(9) DEFINITIONS.—In this subsection: 
(A) 
STAFF
CHAIRPERSON.—The 
term 
‘‘Staff Chairperson’’ means the Department of 
the Treasury official so designated by the Sec-
retary of the Treasury or by the Secretary’s 
designee. 
(B) SUBJECT PERSON.—In this subsection, 
the term ‘‘subject person’’ means the person or 
persons who may be liable to the United States 
for a civil penalty. 
SEC. 8. NATIONAL SECURITY REVIEW OF BUSINESS RELA-
TIONSHIPS WITH BYTEDANCE. 
(a) NATIONAL SECURITY INVESTIGATIONS.— 
(1) IN GENERAL.—CFIUS shall— 
(A) review the relationship of each covered 
United States business with ByteDance to de-
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termine the effects of such relationship on the 
national security of the United States; and 
(B) issue a report to the President con-
taining the findings of such review. 
(2) PRESIDENTIAL AUTHORITY.—After review-
ing a report issued under paragraph (1) with respect 
to a relationship, the President may take such action 
for such time as the President considers appropriate 
to suspend or prohibit the relationship if the rela-
tionship threatens to impair the national security of 
the United States. 
(3) PROCEDURES.—To the extent practicable, 
CFIUS and the President shall carry out a review 
of a relationship under this subsection in the same 
manner as a covered transaction is reviewed under 
section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565). 
SEC. 9. REPORT ON NATIONAL SECURITY THREAT OF MO-
BILE APPLICATIONS UTILIZED BY THE PEO-
PLE’S REPUBLIC OF CHINA AND CHINESE 
COMMUNIST PARTY. 
(a) REPORTING REQUIREMENT.—Not later than 180 
days after the enactment of this Act, and annually there-
after, the Secretary of State and the Attorney General, 
in consultation with the Director of National Intelligence, 
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shall submit to the appropriate congressional committees 
a report describing— 
(1) the scope of efforts by the People’s Republic 
of China and Chinese Communist Party to utilize 
mobile applications to perform espionage on U.S. 
citizens, and business and organizations located in 
the United States; 
(2) the means and objectives of the People’s 
Republic of China and Chinese Communist Party in 
utilizing mobile applications to perform espionage 
and spread disinformation in the United States; and 
(3) a detailed strategy regarding how the Sec-
retary of State and the Attorney General intend to 
counter espionage and disinformation efforts con-
ducted by the People’s Republic of China and the 
Chinese Communist Party using mobile applications. 
(b) FORM.—The report required by subsection (a) 
shall be submitted in unclassified form, but may include 
a classified annex if necessary. The unclassified portion 
of such report shall be made available on a publicly avail-
able internet website of the Federal Government. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
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