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Potential TikTok ban threatens the US business of China’s cross-border sellers and the global ambitions of ByteDance

  • In the face of a potential ban of TikTok in the US, Chinese merchants selling on the platform are preparing for the worst
  • Leaving the US, a global trendsetter and major source of viral content, would be far more devastating to TikTok than exiting other markets like India

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The US is forcing ByteDance to divest TikTok or face a ban, upending the future businesses of Chinese merchants on TikTok Shop. Illustration: Henry Wong
Coco Fengin Beijing

Luo Ziyan, who goes by the online name Daxiang and runs several profitable stores on TikTok for the e-commerce company Uebezz, is the envy of her fellow merchants in Yiwu, an export hub south of Shanghai.

The cross-border sales manager was among the first to use the globally popular short-video app to promote household goods to consumers in the United States and Southeast Asia, and her advice has been highly sought after by others hoping to replicate her success.

But after US President Joe Biden last month signed into law a bill requiring TikTok’s Chinese owner ByteDance to divest the platform’s US operations in 270 days or face a ban on the app, Luo has received at least one query almost every day that revolves around one theme: is opening a TikTok shop still worth the trouble?

Luo said she was not quite sure how to answer. “If there hadn’t been this [bill], I would definitely recommend them to do so in the US,” she said, adding that her business in the US is “certainly more profitable” than those in other markets.

TikTok Shop is the e-commerce service of the globally popular short-video app owned by Beijing-based ByteDance. Photo: Matt Haldane
TikTok Shop is the e-commerce service of the globally popular short-video app owned by Beijing-based ByteDance. Photo: Matt Haldane

Other cross-border merchants interviewed by the South China Morning Post are more certain. “It’s not the time for newcomers to enter the US,” said Hong Ming, co-founder of the Shenzhen-based TikTok Seller Alliance.

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