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US President Donald Trump announced that he would approve the sale of the Chinese video-sharing application TikTok with Oracle of the United States.
According to foreign media such as Reuters on the 19th (local time), President Trump said at a press conference held at the White House that he would “approve an agreement to allow TikTok to continue operating in the United States.”
President Trump said “security will be 100%” and that concerns about the national security of the United States have been resolved. President Trump also said, “This deal will be a fantastic deal.” The United States warned that China-based TikTok steals personal information from Americans and will ban its use for security reasons.
In regards to this, the mission of the new Reuters company is ‘TikTok Global’. Oracle and Wal-Mart will have significant stakes, and TikTok’s parent company Bytedance has agreed that Oracle has the right to inspect the source code. The new company is based in Texas and the majority of the directors are appointed by Americans. The CEO is also American.
President Trump has pushed for sanctions against Tik-Tok due to threats to national security, saying that information about American Tik-Tok users could be passed on to the CCP. Last month, the White House announced a deadline for Byte Dance to sell the American TikTok business to American companies before the 20th of this month. It has said that if the sale is not made, it will ban the use of TikTok in the US.
The remaining step is the approval of the Chinese party. To prevent TikTok’s mergers and acquisitions in the US, China recently enacted a law that states that if a company possessing advanced technologies such as artificial intelligence (AI) is sold abroad, it must obtain approval from the Communist Party. China’s state-run Xinhua News Agency previously said: “The sale of (Tik-Tok) is a form of technology export, and we should seriously consider suspending the ongoing negotiations.”
Oracle’s acquisition of TikTok depends on who owns 50% or more of the new company. China has a policy that if TikTok owns 50% or more, it will not prevent alliances with US companies, but there is a high possibility that TikTok will not approve the transaction if it has less than 50% stake.
