Singapore media, Lianhe Zaobao, has published an article reporting that the founder of TikTok and ByteDance Zhang Yiming, has changed his citizenship to become a Singaporean.
ByteDance has also responded to the news by stating that from now on, the company is now considered a Singaporean company with its controller holding Singaporean nationality.
ByteDance's move coincides with its recent legal dispute with the U.S, making many wonder what is the true intention of shifting the nationality of the company to Singaporean, and why, particularly Singapore?
A classical case of Singaporean washing?
Many are speculating that Zhang's move to shift his citizenship and the company's citizenship to Singaporeans during a time when the company is facing scrutiny from the United States is a classic case of "Singaporean washing."
Singaporean washing is a current phenomenon where companies start moving to Singapore to evade international scrutiny. Between 2019 to 2022, more and more chinese companies has been shifting their business to Singapore to sidestep the US-China geopolitical tension.
An example would be the fast-fashion e-commerce unicorn Shein Group, who recently shifted their headquarters to Singapore.
ByteDance has recently been embroiled in a prolonged battle with the U.S authorities, who have expressed concerns about TikTok's data practices and potential ties to the Chinese government.
ByteDance's efforts to address these concerns through diplomatic channels have largely fallen flat. In March 2023, TikTok CEO Shou Zi Chew appeared before Congress in an attempt to alleviate lawmakers' concerns.
However, the hearing quickly turned confrontational, with lawmakers taking "turns battering Chew with inquiries for more than four gruelling hours, questioning TikTok's ownership by Beijing-based ByteDance". This unsuccessful engagement highlighted the depth of American suspicion toward the company
Singapore is often regarded as the Switzerland of Southeast Asia, with the country standing at the neutral point of the growing U.S and China geopolitical war. Singapore has also had a long term friendly relationship with both parties, making it the perfect asylum for a company trying to evade the scrutiny from the United States.
ByteDance's move to Singapore could also stem from a practical economic point of view. Historically, Singapore had been a popular choice for global companies considering setting up their Asia Pacific base, thanks to the city-state's business-friendly environment, strong government support, and a large pool of regional talents.
Major tech corporations like Google and Facebook have also based their Asia-Pacific operations in Singapore, creating a precedent for ByteDance's move. Hence, ByteDance's move to Singapore could be more than just politically motivated, as it could be due to practical reasons as well.
Shedding its made in China label?
Another significant motivation for ByteDance's Singapore expansion could be rooted from its desire to establish a corporate identity that isn't exclusively defined by its Chinese origins.
When Shein was facing global scrutiny for using a Uyghur labour, the company also strategically tried to shift its headquarters to Singapore in an attempt to disassociate its company from its Chinese origins.
Similarly, TikTok is eager to shake off its "Made in China" label in the face of increasingly heightened scrutiny from Western regulators. By doing so, it would be able to shake off the accusation that the Chinese government is trying to use the app for espionage since the company is no longer associated to China.
Establishing a significant presence in Singapore helps ByteDance position TikTok as a truly global platform rather than a Chinese app operating internationally.
Chinese community's reaction to the shift
ByteDance's move has received the blessings from the Chinese community, with many expressing that even if the company moves to Singapore, it will still be a Chinese company at heart.
One netizen wrote that the decision to shift overseas doesn't reflect the company's sentiment of the country. The netizen adds that you can still be patriotic to the country even if you are overseas, and non-patriotic even if you are in the country.
While there is also discussion which country ByteDance should settle in. Some netizens are advising the company to move to Hong Kong, stating that Hong Kong is one of the countries with the strong economies and the most incentives for a Chinese company.
The netizen adds that another advantage of moving to Hong Kong is the country is also protected and controlled by the Chinese government although that is not written on paper.
All just a rumour?
At the height of the discussion, Douyin's news account has released a statement saying that the rumours about ByteDance founder changing his citizenship and the company becoming a Singaporean company is all but a rumour.
Till now, we still do not have concrete evidence from the company to confirm or deny all the claims, and we will just have to wait to find out more.
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