A leaked organisational chart viewed by Business Insider shows that TikTok Shop's US e-commerce operations are largely led by staffers who were previously or are currently based in China, and that the company has shed American e-commerce leaders through layoffs or voluntary exits. Insiders say the shift has led to some friction, with staffers citing strategy missteps when local nuances are lost.
The chart, viewed by Business Insider, shows that TikTok Shop's US operations team is overseen by Mu Qing, a former e-commerce executive for Douyin, the Chinese version of TikTok. Mu reports to Bob Kang, ByteDance's e-commerce lead. Six of the seven US product category leaders who report to Mu previously worked in China at ByteDance or other companies. The person overseeing the US Shop creator team previously ran Douyin's creator team.
TikTok Shop is ByteDance's social shopping platform where users buy products through influencer videos or livestreams. The company hired from Amazon and other US firms in 2023 as it prepared to get its e-commerce business off the ground, and later lost many of its US operations leaders.
Earlier this year, the company told all US merchants they needed to switch to TikTok Shop's in-house fulfilment and shipping program by the end of March. The proposed policy drew backlash, with some sellers threatening to leave the platform, a Shop agency partner said. The company scrapped the proposed policy in February. “Leadership from China is used to consumers or sellers adjusting quickly, but in the US, customers have alternatives, and if they don't like an experience they will not usually stick around,” one former Shop staffer told Business Insider.
ByteDance also pushed a live shopping strategy that was more common in China than in the US. “They wanted 'Live' to be the thing like it is in Asia, but organizationally it was the big push, and then they moved everything back,” said a former staffer. Another former staffer said top leadership “eventually got smart to this not being something they could brute force.”
Internally, three insiders felt elements of “996 work culture,” a workplace philosophy popularized in China that encourages long hours and weekend work, had ramped up at TikTok in the US. “There's people who are hungrier, used to the long hours, more prepared for the chaos of moving quickly,” a current Shop staffer said. “That's something that I battle with.”
A TikTok spokesperson said the Shop US leadership team “has remained largely unchanged for more than a year, and the entire organization is focused on helping American businesses of all sizes grow and succeed on the platform.” The spokesperson pointed to a survey the company commissioned from PF Global that found 85% of businesses using TikTok Shop said it had increased sales and revenue.
Z. John Zhang, a Wharton professor and founding director of its China Center, said hiring local experts when entering a new market is a common strategy among international firms. He said leaders brought from their home market can make assumptions based on that market, which can lead to strategic mistakes.
Analysis
Why This Matters
- The shift means US businesses selling on TikTok Shop may face policies and strategies designed for the Chinese market, which could affect their operations and growth.
- The retained Chinese control of e-commerce, despite the US divestment law, keeps a key part of TikTok's US business under ByteDance's influence, continuing national security concerns.
- The internal friction and culture clash highlight challenges Chinese tech companies face when expanding into Western markets, with implications for other firms following similar paths.
Background
TikTok is a short-video app owned by Beijing-based ByteDance. For years, US lawmakers and presidents have pushed ByteDance to sell its US operations over fears of Chinese government interference. In January, ByteDance sold a large stake to a consortium of investors, complying with a divestment law, but retained its e-commerce and advertising businesses. TikTok Shop, launched in 2023, is a social shopping platform that lets users buy products through videos. ByteDance initially staffed its US e-commerce team with experienced leaders from Amazon and Meta, but has since replaced many with executives from its Chinese operations.
Key Perspectives
TikTok spokesperson: Says the Shop US leadership team has remained largely unchanged for over a year, and the whole organisation is focused on helping American businesses succeed. Points to a survey showing 85% of businesses using TikTok Shop reported increased sales.
Insiders (current and former staffers): Say the increased reliance on Chinese executives, many from ByteDance's domestic operations, has led to strategy missteps such as the scrapped fulfilment mandate and a less-successful live shopping push. Some also describe a shift to "996 work culture."
Z. John Zhang (Wharton professor): Notes that bringing in home-market executives is a common strategy for international expansion, but these leaders often make assumptions based on their home market that can lead to mistakes in a foreign market.
What to Watch
- Whether ByteDance further consolidates control of TikTok Shop's US operations or adjusts its strategy in response to market feedback.
- The impact on seller retention and growth, particularly after the scrapped fulfilment policy and live shopping push.
- Any new regulatory attention on ByteDance's retained control of US e-commerce and advertising, despite the divestment.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedExecutives from China largely lead TikTok Shop’s US operations, according to a leaked chart.All Content from Business Insider: “TikTok Shop's US operations are now largely led by staffers who were previously or are currently based in China, according to an org chart viewed by Business Insider”
- SupportedByteDance retained control of TikTok’s US e-commerce business after selling a large chunk of TikTok US.All Content from Business Insider: “In January, ByteDance sold off a large chunk of TikTok US to a consortium of investors to comply with a divestment law. It passed along oversight to those investors of parts of its operations, such as data management, but did not relinquish control of its US e-commerce or advertising businesses”
- SupportedTikTok Shop’s US operations are largely led by staffers previously or currently based in China, and the company shed American e-commerce leaders through layoffs or voluntary exits.All Content from Business Insider: “TikTok has elevated executives with backgrounds in Chinese e-commerce — many of whom are now based in the US — and shed American e-commerce leaders through layoffs or voluntary exits. TikTok Shop's US operations are now largely led by staffers who were previously or are currently based in China”
- SupportedInsiders said the shift led to friction and strategy missteps when local nuances were lost.All Content from Business Insider: “Still, company insiders said the changing of the guard has led to some strategy missteps when local nuances are lost.”
- SupportedA former Shop staffer said: “Leadership from China is used to consumers or sellers adjusting quickly, but in the US, customers have alternatives, and if they don't like an experience they will not usually stick around.”All Content from Business Insider: “"Leadership from China is used to consumers or sellers adjusting quickly, but in the US, customers have alternatives, and if they don't like an experience they will not usually stick around," said one former Shop staffer who worked on TikTok's shipping strategy.”
- SupportedA former Shop staffer said: “They wanted 'Live' to be the thing like it is in Asia, but organizationally it was the big push, and then they moved everything back.”All Content from Business Insider: “"They wanted 'Live' to be the thing like it is in Asia, but organizationally it was the big push, and then they moved everything back," said one former Shop staffer who worked with partners on their live selling strategies and was laid off last year.”
- SupportedA former staffer said top leadership “eventually got smart to this not being something they could brute force.”All Content from Business Insider: “Top leadership "eventually got smart to this not being something they could brute force," they said.”
- SupportedThree insiders felt elements of “996 work culture” had ramped up at TikTok in the US; a current Shop staffer said: “There's people who are hungrier, used to the long hours, more prepared for the chaos of moving quickly. That's something that I battle with.”All Content from Business Insider: “Three insiders felt that elements of "996 work culture," a workplace philosophy popularized in China that encourages staffers to work 12-hour days and on weekends, had ramped up at TikTok in the US. The workplace mindset has shifted, a current Shop staffer said. "There's people who are hungrier, used to the long hours, more prepared for the chaos of moving quickly," they said. "That's something that I battle with."”
- SupportedA TikTok spokesperson said the Shop US leadership team “has remained largely unchanged for more than a year” and that the organization is focused on helping American businesses grow and succeed on the platform.All Content from Business Insider: “A TikTok spokesperson said its Shop US leadership team "has remained largely unchanged for more than a year, and the entire organization is focused on helping American businesses of all sizes grow and succeed on the platform."”
- SupportedThe company-commissioned PF Global survey found that 85% of businesses using TikTok Shop said it had increased sales and revenue.All Content from Business Insider: “They pointed to a May and June survey the company commissioned from PF Global, which found that 85% of businesses using TikTok Shop said it had increased sales and revenue”
- SupportedSix of the seven US product category leaders who report to Mu previously worked in China at ByteDance or other companies.All Content from Business Insider: “Six out of the seven US product category leaders who report to Mu previously worked in China at ByteDance or other companies.”
- SupportedTikTok told all US merchants to switch to its in-house fulfilment and shipping program by the end of March, then scrapped the proposed policy in February.All Content from Business Insider: “The company told all US merchants they needed to switch to TikTok Shop's in-house fulfillment and shipping program by the end of March. They could no longer send out their products independently and would have to pay TikTok's service fee. The mandate drew backlash, with some sellers threatening to leave the platform, a Shop agency partner said. The company scrapped the proposed policy in February.”
