In a surprising turn of events for TikTok’s prospects in the United States, President Donald Trump has come to a monumental agreement with the Chinese. This deal will enable the controversial social media service to remain active in the country. TikTok, owned by Chinese tech company ByteDance, is facing intense scrutiny. The worries were twofold — the first national security, the second that data could be shared with the Chinese government.
The federal government had long raised concerns that user data from the popular app TikTok could be accessed by the Chinese government. Just earlier this year, the U.S. Supreme Court upheld a ban on TikTok. This ban would stay in place even if ByteDance divests its U.S. operations. After the ruling, the Biden administration gave TikTok’s American operations until mid-September to sell off their U.S. operations. They cautioned that if TikTok fails to enter into an agreement, it will be banned. This deadline has already been extended three times, most recently with an extension that expires on September 17.
This is what happened to TikTok in the U.S. when the ban was first pitched back in January. The suspension was hardly in effect for a day before the agency announced a 16-month delay. Since then, President Trump has delayed any final decisions on TikTok. What he cares about is that people find a good amicable resolution, short of litigation.
In the past week of negotiations, a U.S. trade delegation achieved substantial progress. Among other agenda items, they completed a landmark “framework” agreement with China during talks in Madrid. Last week, China publicly acknowledged the development of this framework. In no case, officials insisted, will any of the agreements be at the expense of their companies’ interests.
As part of the agreement, Oracle will uphold its current plan to host TikTok’s servers within the U.S. There are unspecified licensing provisions, no doubt for TikTok’s algorithm and other IP rights.
“We have a deal on TikTok, I’ve reached a deal with China, I’m going to speak to President Xi on Friday to confirm everything up.” – Donald Trump
Wang Jingtao, the deputy head of China’s cyberspace administration, declared the accord as calling for Chinese government approval on all TikTok-related issues. This is true even for sale of technology exports and licensing arrangements.
“Licensing the algorithm and other intellectual property rights.” – Wang Jingtao
On the heels of that news, President Trump tweeted that a buyer for TikTok would be announced soon. This news might allay persistent concerns over data security and national interest.