The Biden administration defended its nominee to lead the World Bank over his business connections to ByteDance, TikTok’s Chinese parent company, as the video app finds itself at the forefront of a push for regulating financial ties between the United States and China.
As vice chairman of General Atlantic, a major investor in ByteDance and more than two dozen Chinese companies, Ajay Banga’s nomination has prompted questions about the White House’s vetting process as bipartisan backlash over China’s suspected influence operations grows.
BIDEN WORLD BANK PICK’S CHINESE BUSINESS TIES RAISE VETTING QUESTIONS
In a statement defending Banga, a Treasury Department spokesperson distanced the nominee from his firm’s ties to TikTok, telling the Washington Examiner on Friday that “General Atlantic’s investment in ByteDance predates Banga’s work there.”
The spokesperson said Banga’s experience leading Mastercard, a global financial payments company, demonstrates his commitment to keeping consumer data safe.
“From his tenure at Mastercard, Banga knows firsthand the importance of taking concrete measures to protect the data privacy of consumers,” this Treasury Department official added.
As president and CEO of Mastercard in 2020, Banga won approval from China’s influential central bank for access to its $27 trillion payments market. The longtime executive also sits on the board of Singapore’s $298 billion state investment fund, Temasek, which lists its exposure to China at 22%.
China’s suspected military and economic ambitions have taken on greater scrutiny inside of Washington, with a top U.S. intelligence official branding TikTok’s trove of user data a “threat” to national security this week.
The White House backed a bill this week that would give the government the power to force the sale of a company from China or other adversaries, such as TikTok, when a national security risk is assessed.
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If appointed, Banga would lead the World Bank as China wages a competition for influence as a top overseas development lender through its “One Belt, One Road” initiative.
Banga is on a listening tour as he campaigns for the World Bank role. He is expected to travel to China, a member country.