The United States has recently stepped up attempts to sever TikTok’s U.S. operations from its Chinese parent company, ByteDance. So are they, driven by increasing national security worries. Former President Donald Trump and Chinese President Xi Jinping were on the phone last week. As the two of them spoke, completely coincidentally, they both claimed victory in a narrow preliminary agreement about TikTok’s future in the United States.
The Supreme Court upheld a law earlier this year that would ban TikTok unless ByteDance divested its U.S. operations, heightening the urgency for a resolution. Waving his dealmaking flag high Trump expressed his excitement about the potential deal on his favored communication outlet Truth Social. He called his summit with Xi Jinping “productive” and thanked Xi for giving his seal of approval to the deal.
According to today’s reports, a group of American investors is poised to purchase TikTok’s American operations. The particulars of the deal are still a little unclear. This action furthers Trump’s two-pronged approach to national security. It wants to reduce foreign influence over social media platforms that are popular with young people.
China’s Commerce Ministry reacted to the U.S.-China discussions with a carefully worded statement that reaffirmed China’s openness to negotiations, even as the U.S. The statement didn’t announce anything definitive about the deal.
“China’s position on TikTok is clear: The Chinese government respects the wishes of the enterprise and welcomes it to carry out commercial negotiations in accordance with market rules to reach a solution compliant with China’s laws and regulations, and strikes a balance of interests.” – China’s Commerce Ministry
Trump’s attitude toward TikTok has done a complete 180 on the matter. At first, he urged a ban back in his first term, but today, he uses the bully pulpit to enthuse and mobilize young voters to victory in his historic 2024 presidential campaign. The former president received bipartisan backlash for consistently postponing the embargo’s rollout. Originally announced to begin in January, that date has already been extended to December.
The agreement leaves tech giant Oracle to manage TikTok’s data in the United States under the controversial agreement. This is a positive move because it shows a commitment to data privacy and security. Oracle, owned by billionaire Larry Ellison, has been positioned as a key player in ensuring that the algorithm governing TikTok remains under American control. Interestingly, Ellison’s son, David Ellison, recently purchased Paramount, which also owns CBS News.
“The data and privacy will be led by one of America’s greatest tech companies, Oracle, and the algorithm will also be controlled by America as well,” – [No specific person mentioned]
As negotiations progress, Trump sidestepped questions regarding whether an American buyer would need to develop a new algorithm for TikTok.
Karoline Leavitt, a spokesperson for Trump, stated, “So all of those details have already been agreed upon. Now we just need this deal to be signed.”