US issues further sanctions on Iran, targets drones

Washington — The United States on Thursday issued further sanctions on Iran, targeting Iranian drones, including their use by Russia in the war in Ukraine, as Washington seeks to ratchet up pressure on Tehran. 

In a statement, the U.S. Treasury Department said the action, taken in coordination with the United Kingdom and Canada, targets over one dozen entities, individuals and vessels it accused of playing a key role in facilitating and financing the clandestine sale of Iranian unmanned aerial vehicles to Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). 

MODAFL in turn supports Iran’s elite Revolutionary Guards (IRGC) and Russia’s war in Ukraine, the Treasury said.

“Iran’s Ministry of Defense continues to destabilize the region and world with its support to Russia’s war in Ukraine, unprecedented attack on Israel, and proliferation of UAVs and other dangerous military hardware to terrorist proxies,” said Treasury’s Under Secretary for Terrorism and Financial Intelligence,Brian Nelson. 

Washington also targeted two companies and a vessel involved in the shipment of Iranian commodities, the Treasury said.

“The United States, in close coordination with our British and Canadian partners, will continue to use all means available to combat those who would finance Iran’s destabilizing activities,” Nelson said.

Iran’s mission to the United Nations in New York did not immediately respond to a request for comment. 

Sahara Thunder plays key role 

The Treasury said it targeted a company named Sahara Thunder, accusing it of being a main front company that oversees MODAFL’s commercial activities in support of the IRGC and Russia’s war in Ukraine. 

It said the company plays a key role in Iran’s design, development, manufacture and sale of thousands of drones, many of them ultimately transferred to Russia for use against Ukraine. 

As of 2022, Russian officials were negotiating a deal for Sahara Thunder to deliver and produce thousands of drones per year at a facility in Russia under U.S. sanctions, the Treasury said. 

Sahara Thunder’s leadership and shipping network, which the Treasury said the company relied on for the sale and shipment of Iranian commodities on behalf of MODAFL to jurisdictions including China, Russia and Venezuela, were also targeted. 

An Iran-based company involved in the procurement and development of unmanned aerial vehicles, its leadership and an Iranian cargo airline were also among those hit with sanctions.

The U.S. earlier this month had warned it would impose further sanctions on Iran following its unprecedented attack on Israel. 

Washington has since taken measures, including targeting Iran’s drone program, steel industry and cyber actors. 

Iran this month launched more than 300 drones and missiles against Israel, its first direct attack on the country, in retaliation for a suspected Israeli airstrike on its embassy compound in Damascus on April 11 that killed elite military officers.

Nothing off the table in US response to China overcapacity, Yellen says

washington — The Biden administration is not taking any options off the table to respond to China’s excess industrial capacity, which is a top concern for the U.S. and its allies, U.S. Treasury Secretary Janet Yellen told Reuters on Thursday.

China exporting its way to full employment is not acceptable to the rest of the world, Yellen said in a Reuters Next interview in Washington.

Yellen said that during her trip to China earlier this month, she was “successful” in raising U.S. concerns with Chinese officials about Beijing flooding global markets with electric vehicles (EVs), solar panels and other clean energy goods, threatening U.S. jobs. She added that Chinese officials acknowledge a problem with industrial overcapacity, but they need to address it.

She said the issue, which threatens producers of similar goods in the U.S., Europe, Japan and emerging markets such as India and Mexico, was again “discussed intensively” with Chinese officials in Washington on the sidelines of the International Monetary Fund and World Bank spring meetings last week.

Yellen added that the problem will not be resolved “in a day or a week.”

“So it’s important that China recognize the concern and begin to act to address it,” Yellen said. “But we don’t want our industry wiped out in the meantime, so I wouldn’t want to take anything off the table.”

The Biden administration is completing a review of the “Section 301” unfair trade tariffs on Chinese imports imposed by former President Donald Trump in 2018, which U.S. officials have said could lead to higher tariffs on some products. President Joe Biden last week called for the review to triple the Section 301 duties on Chinese steel to 25%.

U.S. Trade Representative Katherine Tai also told U.S. senators that the U.S. needed to take “early action, decisive action” to protect the fledgling American EV sector from Chinese imports. U.S. tariffs on Chinese vehicle imports are now about 27.5%, and few Chinese EVs are sold in the U.S. at the moment.

“We have no problem with China producing and selling globally and exporting, but the United States and Europe and other countries also want to have some involvement in the ability to produce clean energy products that are going to be of great importance,” Yellen said.

 

US growth slowed sharply last quarter to 1.6%, reflecting economy pressured by high rates

WASHINGTON — The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace.

Thursday’s report from the Commerce Department said the gross domestic product — the economy’s total output of goods and services — decelerated in the January-March quarter from its brisk 3.4% growth rate in the final three months of 2023.

A surge in imports, which are subtracted from GDP, reduced first-quarter growth by nearly 1 percentage point. Growth was also held back by businesses reducing their inventories. Both those categories tend to fluctuate sharply from quarter to quarter.

By contrast, the core components of the economy still appear sturdy. Along with households, businesses helped drive the economy last quarter with a strong pace of investment.

The import and inventory numbers can be volatile, so “there is still a lot of positive underlying momentum,” said Paul Ashworth, chief North America economist at Capital Economics.

The economy, though, is still creating price pressures, a continuing source of concern for the Federal Reserve. A measure of inflation in Friday’s report accelerated to a 3.4% annual rate from January through March, up from 1.8% in the last three months of 2023 and the biggest increase in a year. Excluding volatile food and energy prices, so-called core inflation rose at a 3.7% rate, up from 2% in fourth-quarter 2023.

From January through March, consumer spending rose at a 2.5% annual rate, a solid pace though down from a rate of more than 3% in each of the previous two quarters. Americans’ spending on services — everything from movie tickets and restaurant meals to airline fares and doctors’ visits — rose 4%, the fastest such pace since mid-2021.

But they cut back spending on goods such as appliances and furniture. Spending on that category fell 0.1%, the first such drop since the summer of 2022.

The state of the U.S. economy has seized Americans’ attention as the election season has intensified. Although inflation has slowed sharply from a peak of 9.1% in 2022, prices remain well above their pre-pandemic levels.

Republican critics of President Joe Biden have sought to pin responsibility for high prices on Biden and use it as a cudgel to derail his re-election bid. And polls show that despite the healthy job market, a near-record-high stock market and the sharp pullback in inflation, many Americans blame Biden for high prices.

Last quarter’s GDP snapped a streak of six straight quarters of at least 2% annual growth. The 1.6% rate of expansion was also the slowest since the economy actually shrank in the first and second quarters of 2022.

The economy’s gradual slowdown reflects, in large part, the much higher borrowing rates for home and auto loans, credit cards and many business loans that have resulted from the 11 interest rate hikes the Fed imposed in its drive to tame inflation.

Even so, the United States has continued to outpace the rest of the world’s advanced economies. The International Monetary Fund has projected that the world’s largest economy will grow 2.7% for all of 2024, up from 2.5% last year and more than double the growth the IMF expects this year for Germany, France, Italy, Japan, the United Kingdom and Canada.

Businesses have been pouring money into factories, warehouses and other buildings, encouraged by federal incentives to manufacture computer chips and green technology in the United States. On the other hand, their spending on equipment has been weak. And as imports outpace exports, international trade is also thought to have been a drag on the economy’s first-quarter growth.

Kristalina Georgieva, the IMF’s managing director, cautioned last week that the “flipside″ of strong U.S. economic growth was that it was “taking longer than expected” for inflation to reach the Fed’s 2% target, although price pressures have sharply slowed from their mid-2022 peak.

Inflation flared up in the spring of 2021 as the economy rebounded with unexpected speed from the COVID-19 recession, causing severe supply shortages. Russia’s invasion of Ukraine in February 2022 made things significantly worse by inflating prices for the energy and grains the world depends on.

The Fed responded by aggressively raising its benchmark rate between March 2022 and July 2023. Despite widespread predictions of a recession, the economy has proved unexpectedly durable. Hiring so far this year is even stronger than it was in 2023. And unemployment has remained below 4% for 26 straight months, the longest such streak since the 1960s.

Inflation, the main source of Americans’ discontent about the economy, has slowed from 9.1% in June 2022 to 3.5%. But progress has stalled lately.

Though the Fed’s policymakers signaled last month that they expect to cut rates three times this year, they have lately signaled that they’re in no hurry to reduce rates in the face of continued inflationary pressure. Now, a majority of Wall Street traders don’t expect them to start until the Fed’s September meeting, according to the CME FedWatch tool.

New York appeals court overturns Harvey Weinstein’s rape conviction from landmark #MeToo trial

NEW YORK — New York’s highest court on Thursday overturned Harvey Weinstein’s 2020 rape conviction, finding the judge at the landmark #MeToo trial prejudiced the ex-movie mogul with “egregious” improper rulings, including a decision to let women testify about allegations that weren’t part of the case.

“We conclude that the trial court erroneously admitted testimony of uncharged, alleged prior sexual acts against persons other than the complainants of the underlying crimes,” the court’s 4-3 decision said. “The remedy for these egregious errors is a new trial.”

The state Court of Appeals ruling reopens a painful chapter in America’s reckoning with sexual misconduct by powerful figures — an era that began in 2017 with a flood of allegations against Weinstein. His accusers could again be forced to relive their traumas on the witness stand.

The court’s majority said “it is an abuse of judicial discretion to permit untested allegations of nothing more than bad behavior that destroys a defendant’s character but sheds no light on their credibility as related to the criminal charges lodged against them.”

In a stinging dissent, Judge Madeline Singas wrote that the majority was “whitewashing the facts to conform to a he-said/she-said narrative,” and said the Court of Appeals was continuing a “disturbing trend of overturning juries’ guilty verdicts in cases involving sexual violence.”

“The majority’s determination perpetuates outdated notions of sexual violence and allows predators to escape accountability,” Singas wrote.

Weinstein, 72, has been serving a 23-year sentence in a New York prison following his conviction on charges of criminal sex act for forcibly performing oral sex on a TV and film production assistant in 2006 and rape in the third degree for an attack on an aspiring actress in 2013.

He will remain imprisoned because he was convicted in Los Angeles in 2022 of another rape and sentenced to 16 years in prison. Weinstein was acquitted in Los Angeles on charges involving one of the women who testified in New York.

Weinstein’s lawyers argued Judge James Burke’s rulings in favor of the prosecution turned the trial into “1-800-GET-HARVEY.”

The reversal of Weinstein’s conviction is the second major #MeToo setback in the last two years, after the U.S. Supreme Court refused to hear an appeal of a Pennsylvania court decision to throw out Bill Cosby’s sexual assault conviction.

Weinstein’s conviction stood for more than four years, heralded by activists and advocates as a milestone achievement, but dissected just as quickly by his lawyers and, later, the Court of Appeals when it heard arguments on the matter in February.

Allegations against Weinstein, the once powerful and feared studio boss behind such Oscar winners as “Pulp Fiction” and “Shakespeare in Love,” ushered in the #MeToo movement. Dozens of women came forward to accuse Weinstein, including famous actresses such as Ashley Judd and Uma Thurman. His New York trial drew intense publicity, with protesters chanting “rapist” outside the courthouse.

Weinstein is incarcerated in New York at the Mohawk Correctional Facility, about 100 miles (160 kilometers) northwest of Albany.

He maintains his innocence. He contends any sexual activity was consensual.

Weinstein lawyer Arthur Aidala argued before the appeals court in February that Burke swayed the trial by allowing three women to testify about allegations that weren’t part of the case and by giving prosecutors permission to confront Weinstein, if he had testified, about his long history of brutish behavior.

Aidala argued the extra testimony went beyond the normally allowable details about motive, opportunity, intent or a common scheme or plan, and essentially put Weinstein on trial for crimes he wasn’t charged with.

Weinstein wanted to testify, but opted not to because Burke’s ruling would’ve meant answering questions about more than two-dozen alleged acts of misbehavior dating back four decades, Aidala said. They included fighting with his movie producer brother, flipping over a table in anger and snapping at waiters and yelling at his assistants.

“We had a defendant who was begging to tell his side of the story. It’s a he said, she said case, and he’s saying ‘that’s not how it happened. Let me tell you how I did it,'” Aidala argued. Instead, the jurors heard evidence of Weinstein’s prior bad behavior that “had nothing to do with truth and veracity. It was all ‘he’s a bad guy.'”

Aidala also took issue with Burke’s refusal to remove a juror who had written a novel involving predatory older men, a topic the defense lawyer argued too closely resembled the issues in Weinstein’s case.

A lawyer for the Manhattan district attorney’s office, which prosecuted the case, argued that the judge’s rulings were proper and that the extra evidence and testimony he allowed was important to provide jurors context about Weinstein’s behavior and the way he interacted with women.

“Defendant’s argument was that they had a consensual and loving relationship both before and after the charged incidents,” Appellate Chief Steven Wu argued, referring to one of the women Weinstein was charged with assaulting. The additional testimony “just rebutted that characterization completely.”

Wu said Weinstein’s acquittal on the most serious charges — two counts of predatory sexual assault and a first-degree rape charge involving actor Annabella Sciorra’s allegations of a mid-1990s rape — showed jurors were paying attention and they were not confused or overwhelmed by the additional testimony.

The Associated Press does not generally identify people alleging sexual assault unless they consent to be named; Sciorra has spoken publicly about her allegations.

The Court of Appeals agreed last year to take Weinstein’s case after an intermediate appeals court upheld his conviction. Prior to their ruling, judges on the lower appellate court had raised doubts about Burke’s conduct during oral arguments. One observed that Burke had let prosecutors pile on with “incredibly prejudicial testimony” from additional witnesses.

Burke’s term expired at the end of 2022. He was not reappointed and is no longer a judge.

In appealing, Weinstein’s lawyers sought a new trial, but only for the criminal sexual act charge. They argued the rape charge could not be retried because it involves alleged conduct outside the statute of limitations.

Blinken kicks off direct engagement with China ahead of tough talks

State Department — U.S. Secretary of State Antony Blinken underscored the necessity for “direct” and “sustained engagement” between the United States and China during his first official meeting in Shanghai, a city home to more than 1,000 U.S. companies.

Thursday morning, Blinken held talks with Chen Jining, Chinese Communist Party Secretary for Shanghai. Chen is the highest-ranking local official and is a member of the Politburo of the Chinese Communist Party.

Blinken said he would lay out “our differences, which are real” but seek to “work through them” as well as to “build cooperation where we can.”

Welcoming the Secretary to Shanghai at the city’s Grand Halls, Chen said through a translator that since the establishment of diplomatic ties, the relationship between the two nations has not always been smooth, there’s always been “twists and turns,” “but overall, it has progressed with historical development and progressed forward.”

Blinken was last in Shanghai in 2015 when he was deputy secretary of state.

“In a constructive and candid exchange, the secretary raised concerns about PRC trade policies and non-market economic practices and stressed that the United States seeks a healthy economic competition with the PRC and a level playing field for U.S. workers and firms operating in China,” said State Department spokesperson Matthew Miller.  He was referring to People’s Republic of China.

During a discussion with American and Chinese students from New York University Shanghai, Blinken underscored the importance of expanding exchanges between students, scholars, and business.

“We need to make sure that we are talking to each other, hearing each other, understanding each other,” he said.

According to the State Department, the NYU Shanghai student body currently consists of nearly 2,000 undergraduate and graduate students, half of whom are from China. Students from the United States and some 70 other countries represent the other half.  There are approximately 500 U.S. students.

Later Thursday, Blinken met with business leaders at the American Chamber of Commerce in Shanghai, advocating for the resolution of a range of trade issues facing the world’s two largest economies.

In a brief video, Blinken said late Wednesday he is in China “to make progress on issues that matter most to the American people, including curbing fentanyl trafficking,” against the backdrop of Shanghai’s skyline. He added that officials from the U.S. and China will also discuss other areas where the two countries have “significant disagreements.”

While Washington and Beijing are divided over a range of thorny issues, Blinken began his visit to China this week focusing first on the importance of direct engagement. It is something, he says, is essential for addressing key issues affecting people from both countries and the world. 

Analysts told VOA Blinken’s visit will surface a range of contentious issues but also maintain “the tactical thaw” that gained momentum following U.S. President Joe Biden’s face-to-face talks with PRC President Xi Jinping last November.

“The relationship continues to grow more competitive militarily, technologically, and diplomatically, but the increase is occurring in a more predictable, controlled manner than it was a year earlier due to both countries’ continued investment in high-level diplomacy,” Ali Wyne, a senior research and advocacy adviser for International Crisis Group, told VOA Mandarin in an email.

Intensive diplomacy between Washington and Beijing has yielded little progress in curtailing China’s supply of precursor chemicals used to manufacture illicit fentanyl that affects the United States.  Strains are escalating due to China’s support for Russia in its war on Ukraine, prompting the U.S. to warn further actions against China.

“I’m very pessimistic about this visit. Xi Jinping is committed to helping his close friend Putin and will not be very responsive to America’s requests,” Dennis Wilder, senior fellow for the Initiative for U.S.-China Dialogue on Global Issues at Georgetown University, told VOA Mandarin.

A day before Blinken departed for Shanghai, he unveiled the State Department’s annual report on human rights practices, which said that the PRC government continues to commit genocide and crimes against humanity against Uyghurs and other Muslim minorities in Xinjiang.  Blinken told reporters that he would raise the issue of human rights with the Beijing government.

Blinken is expected to meet with Chinese President Xi Jinping in Beijing Friday afternoon.

The State Department said Blinken will hold a press conference in Beijing before returning to Washington.   

US police clash with students who demand colleges cut financial ties to Israel

austin, texas — Police tangled with student demonstrators in the U.S. states of Texas and California while new encampments sprouted Wednesday at Harvard and other colleges as school leaders sought ways to defuse a growing wave of pro-Palestinian protests.

At the University of Texas at Austin, hundreds of local and state police — including some on horseback and holding batons — clashed with protesters, pushing them off the campus lawn and at one point sending some tumbling into the street. At least 20 demonstrators were taken into custody at the request of university officials and Texas Governor Greg Abbott, according to the state Department of Public Safety.

A photographer covering the demonstration for Fox 7 Austin was arrested after being caught in a push-and-pull between law enforcement and students, the station confirmed. A longtime Texas journalist was knocked down in the mayhem and could be seen bleeding before police helped him to emergency medical staff who bandaged his head.

At the University of Southern California, police got into a back-and-forth tugging match with protesters over tents, removing several before falling back. At the northern end of California, students were barricaded inside a building for a third day at California State Polytechnic University, Humboldt. The school shut down campus through the weekend and made classes virtual.

Harvard University in Massachusetts had sought to stay ahead of protests this week by limiting access to Harvard Yard and requiring permission for tents and tables. That didn’t stop protesters from setting up a camp with 14 tents Wednesday following a rally against the university’s suspension of the Harvard Undergraduate Palestine Solidarity Committee.

Students protesting the Israel-Hamas war are demanding schools cut financial ties to Israel and divest from companies enabling its monthslong conflict. Dozens have been arrested on charges of trespassing or disorderly conduct. Some Jewish students say the protests have veered into antisemitism and made them afraid to set foot on campus.

Columbia University averted another confrontation between students and police earlier in the day. The situation there remained tense, with campus officials saying it would continue talks with protesters for another 48 hours.

On a visit to campus, U.S. House Speaker Mike Johnson, a Republican, called on Columbia University President Minouche Shafik to resign “if she cannot bring order to this chaos.”

“If this is not contained quickly and if these threats and intimidation are not stopped, there is an appropriate time for the National Guard,” he said.

Shafik had set a midnight Tuesday deadline to reach an agreement on clearing an encampment, but the school extended negotiations, saying it was making “important progress.”

On Wednesday evening, a Columbia spokesperson said rumors that the university had threatened to bring in the National Guard were unfounded. “Our focus is to restore order, and if we can get there through dialogue, we will,” said Ben Chang, Columbia’s vice president for communications.

Columbia graduate student Omer Lubaton Granot, who put up pictures of Israeli hostages near the encampment, said he wanted to remind people that there were more than 100 hostages still being held by Hamas.

“I see all the people behind me advocating for human rights,” he said. “I don’t think they have one word to say about the fact that people their age, that were kidnapped from their homes or from a music festival in Israel, are held by a terror organization.”

Harvard law student Tala Alfoqaha, who is Palestinian, said she and other protesters want more transparency from the university.

“My hope is that the Harvard administration listens to what its students have been asking for all year, which is divestment, disclosure and dropping any sort of charges against students,” she said.

Columbia encampment inspires others

Police first tried to clear the encampment at Columbia last week, when they arrested more than 100 protesters. The move backfired, acting as an inspiration for other students across the country to set up similar encampments and motivating protesters at Columbia to regroup.

On Wednesday about 60 tents remained at the Columbia encampment, which appeared calm. Security remained tight around campus, with identification required and police setting up metal barricades.

Columbia said it had agreed with protest representatives that only students would remain at the encampment and they would make it welcoming, banning discriminatory or harassing language.

On the University of Minnesota campus, a few dozen students rallied a day after nine protesters were arrested when police took down an encampment in front of the library. U.S. Representative Ilhan Omar, whose daughter was among the demonstrators arrested at Columbia last week, attended a protest later in the day.

A group of more than 80 professors and assistant professors signed a letter Wednesday calling on the university’s president and other administrators to drop any charges and to allow future encampments without what they described as police retaliation.

They wrote that they were “horrified that the administration would permit such a clear violation of our students’ rights to freely speak out against genocide and ongoing occupation of Palestine.”

Netanyahu encourages police response

Israeli Prime Minister Benjamin Netanyahu lashed out at the pro-Palestinian demonstrations on U.S. college campuses in a video statement released Wednesday, saying the response of several university presidents has been “shameful” and calling on state, local and federal officials to intervene.

Students at some protests were hiding their identities and declined to identify themselves to reporters, saying they feared retribution. At an encampment of about 40 tents at the heart of the University of Michigan’s campus in Ann Arbor, almost every student wore a mask, which was handed to them when they entered.

The upwelling of demonstrations has left universities struggling to balance campus safety with free speech rights. Many long tolerated the protests, but are now doling out more heavy-handed discipline, citing safety concerns.

At New York University this week, police said 133 protesters were taken into custody and all had been released with summonses to appear in court on disorderly conduct charges. More than 40 protesters were arrested Monday at an encampment at Yale University.

Biden signs measure aimed at targeting Captagon trade in Syria

Washington   — Largely overlooked in the massive foreign aid package signed into law by U.S. President Joe Biden on Wednesday is a measure that targets the trafficking of a dangerous drug in Syria. 

The Illicit Captagon Trafficking Suppression Act is part of the package providing military and other aid for Ukraine, Israel and Taiwan. It provides for new sanctions against individuals, entities and networks affiliated with the regime of Syrian President Bashar al-Assad who produce and traffic Captagon.   

Captagon is an addictive, amphetamine-like drug that is cheaply produced. Since the beginning of Syria’s civil war in 2011, the country has become a regional hub for the production and smuggling of Captagon. 

“This is a good step towards accountability and hindering and dismantling Assad’s illicit drug trade in Syria and the Middle East,” the Syrian Emergency Task Force, a Washington-based advocacy group, said in a statement.  

The measure is seen as a continuation of previous congressional actions that have targeted the growing Captagon trade in Syria.  

Mohammed Alaa Ghanem, policy chief of the American Coalition for Syria, said the new measure was sought by the Syrian American community “to address Assad’s pervasive involvement in the Captagon drug trade, which has tragically transformed Syria into a narco-state.” 

“We are encouraged by the enactment of this bill into law,” Ghanem told VOA in an email. “Its inclusion in the comprehensive legislative package which was signed by the president into law highlights Congress’ dedication to the objectives laid out in the original Captagon Act that Congress passed in Dec 2022.”  

The bill was introduced to Congress by Republican Representative French Hill from Arkansas, who said Wednesday on X, “With my bill now signed into law, those directly involved with the proliferation of this dangerous drug will be targeted and sanctioned. 

“It’s crucial that we take further action to disrupt and dismantle the production and trafficking of captagon as it generates billions of illicit funding for the Assad regime and devastates families in the region,” he said.   

Iran and its Lebanese proxy Hezbollah, two major backers of the Syrian government, have also been involved in drug trafficking in Syria. Observers say the trade also has funded Tehran’s military activities in the region.   

Caroline Rose, director of the Strategic Blind Spots Portfolio at the Washington-based New Lines Institute, said the bill is part of a broader U.S. strategy that seeks to curb Captagon trafficking and production in the Middle East.  

“We have seen two rounds of sanctions against Captagon agents imposed by the U.S. Treasury in the last two years, so this will keep the pressure on the U.S. inter-agency strategy to identify more eligible Captagon producers and traffickers to target,” she said.

US Senate passes bill to force TikTok divestment or ban

WASHINGTON — The U.S. Senate voted late Tuesday to send legislation to President Joe Biden that would require Chinese owner ByteDance to divest the popular short video app’s U.S. assets within about nine months or face a

Ban.

The measure, passed by the U.S. House of Representatives on Saturday, has been driven by concerns that China could access Americans’ data or surveil them with the app and Biden has said he will sign it into law.

“For years we’ve allowed the Chinese Communist party to control one of the most popular apps in America that was dangerously shortsighted,” said Senator Marco Rubio, the top Republican on the Intelligence Committee. “A new law is going to require its Chinese owner to sell the app. This is a good move for America.”

TikTok, which says it has not shared and would not share U.S. user data with the Chinese government, has argued the law amounts to a ban that would violate the U.S. free speech rights of its users.

The company did not immediately comment but over the weekend, it told its employees that it would quickly go to court to try to block the legislation.

“We’ll continue to fight, as this legislation is a clear violation of the First Amendment rights of the 170 million Americans on TikTok… This is the beginning, not the end of this long process,” TikTok told employees on Saturday in an email seen by Reuters.

The Senate voted 79 to 18 in favor of the bill.