President Trump announced that a deal has been finalized between the United States and China to keep TikTok operational in the US. 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, Trump stated to reporters before departing for a state visit to the UK.
Initially, TikTok, owned by the Chinese company ByteDance, faced pressure to sell its US operations or risk being banned. However, this ban was continually postponed since its first announcement in January.
Trump declared that a buyer for the US operations would be disclosed soon. Reports indicate that this deal might involve a combination of current and new investors, with completion expected within 30 to 45 days. Notably, it is understood that Oracle will maintain its agreement to host TikTok servers within the United States, addressing the concerns of American lawmakers regarding data security and potential sharing with the Chinese government.
On a broader scale, this announcement came shortly after a US trade delegation reaffirmed a framework agreement reached with China during ongoing negotiations in Madrid. China confirmed that no external agreements would undermine the interests of its companies. Furthermore, discussions included potential licensing of TikTok's algorithm and technology export permissions.
Remarkably, Trump has shifted his stance on TikTok from advocating for a ban to supporting its continued operation in the US market. This evolution follows legislative actions which mandated the sale of TikTok’s US arm or its discontinuation due to perceived national security threats tied to data access. Despite ByteDance’s assurances that their US operations are insulated from Chinese government influence, debates over TikTok’s future and implications for both countries remain contentious.
As negotiations progress, the imminent deadline for a sale, which has already been extended multiple times, is set to expire on September 17th.
