People who know about the situation told Bloomberg on Monday that China's TikTok is thinking about splitting from its parent company, ByteDance, to help ease US concerns about threats to national security.

The report said that a divestiture, which could lead to a sale or an IPO, is a last resort that will only be used if the company's current proposal with US national security officials is not approved.

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TikTok and ByteDance didn't respond right away when Reuters asked them for comments.

The Committee on Foreign Investment in the United States (CFIUS) is conducting a national security evaluation of the short-form video app, and it agreed to apply certain restrictions under the "Project Texas" plan last year in an effort to appease sceptical senators.

According to the article, CFIUS's procedure has halted, leaving TikTok unclear of whether its preparations would be adequate to continue operating in the nation.

It further stated that Justice Department CFIUS members had refused to accept TikTok's proposal.

TikTok, which is used by more than 100 million Americans, has drawn increased attention due to concerns that Chinese officials may gain user data and jeopardise Western security interests. The CEO of TikTok, Shou Zi Chew, will appear before the US Congress the following week.

Because of concerns that user data may be given to China's government, CFIUS, a significant national security committee, has unanimously proposed in 2020 that ByteDance sell itself of TikTok.

Data security measures have been under discussion between TikTok and CFIUS for more than two years. According to TikTok, it has invested more than $1.5 billion in strict data protection measures and denies claims of espionage.