TikTok, the popular short video platform, has outlined plans to invest billions of dollars in Southeast Asia over the coming years, according to CEO Shou Zi Chew, who made the announcement during an event in Indonesia on Thursday.
During his speech, Chew emphasized that TikTok’s content is evolving to become more diverse, coinciding with the platform’s significant user growth and its venture into e-commerce. TikTok is a subsidiary of the Chinese technology firm ByteDance.
Southeast Asia ranks among TikTok’s largest markets in terms of user engagement. However, the company faces challenges in converting its extensive user base into substantial e-commerce revenue, competing against well-established rivals such as Shopee, Lazada, and Tokopedia.
The platform’s e-commerce features allow users to buy products directly through links shared during livestreams.
Chew also mentioned that TikTok employs approximately 8,000 people in Southeast Asia and supports around 2 million small vendors who utilize its platform to sell their products, though he did not provide further details.
At the same time, TikTok is contending with intensifying scrutiny from U.S. lawmakers and state officials advocating for a nationwide ban of the app due to concerns regarding potential influence from the Chinese government. Recently, a bipartisan group of six senators and two House representatives introduced legislation aimed at safeguarding American data from foreign adversaries. This bill seeks to prevent foreign-owned social media platforms, including TikTok, from accessing and using the personal data of U.S. citizens. Senate Finance Committee Chairman Ron Wyden referred to the bill as a measure to ‘cut off data access to unfriendly nations, halt the transmission of Americans’ personal information to China, and strengthen ties with nations that uphold strong privacy standards.’
© Thomson Reuters 2023
