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Image source, EPA
President Donald Trump has threatened to ban Tik Tok in the US if a proper deal is not reached
US President Donald Trump agreed to accept the deal that allows China’s video-sharing app TikTok to continue operating in the United States.
Trump told reporters that he has expressed his approval of the cooperation between TikTok and US firms Oracle and Walmart.
The president previously ordered a ban on apps in the United States on national security grounds.
US security officials fear that the data collected by the owners of TikTok could be turned over to the Chinese government.
The company that owns TikTok, ByteDance, denies allegations that it says it is controlled by the ruling Communist Party in China or that it shares data with the party.
However, the TikTok agreement does not affect the ban on China’s payment and messaging app WeChat; This app will no longer be available on the US App Store starting Sunday night.
Tencent, the giant group that owns WeChat, calls the US ban “regrettable.”
On Saturday, Trump said the TikTok deal would ensure the data of about 100 million US users would be safe. “The security level will be 100%,” he told reporters.
“I’ve been in favor of (‘blessing’) the deal,” Trump said as he left the White House for a campaign event in North Carolina. “I approved the agreement in principle.”
Both TikTok and ByteDance welcomed President Trump’s approval of the deal; This proposal will still need approval from the Chinese government.
TikTok said the agreement will ensure that all US national security requirements are met, while ByteDance said it seeks to reach an agreement “in accordance with US law and Chinese law.” as soon as possible.
President Trump’s support comes days after his administration said it would ban people in the United States from downloading the TikTok app from any App Store starting Sunday.
However, the US Department of Commerce said it postponed this deadline for another week, until September 27, due to recent positive developments.
The controversy over TikTok erupted at a time of intense tensions between the Trump administration and the Chinese government over a number of issues, including trade disputes, protests in Hong Kong and the North. Pandemic corona virus treatment.
What is the TikTok Agreement like?
Under the proposal, a new company would be established, called TikTok Global.
The company will be headquartered in the United States, possibly in Texas, with a predominantly American board of directors, which includes an American CEO and a security specialist.
Image source, Reuters
Oracle and Walmart are expected to have large stakes in the company, and ByteDance has agreed to ensure the security of US user data. TikTok data will be stored by Oracle and the company will have the right to inspect the source code.
President Trump said the new TikTok company will be “fully controlled by Oracle and Walmart.”
However, in a joint statement released on Saturday, Oracle and Walmart said the two firms would invest together to have a 20% stake in the newly formed company TikTok Global.
Of that 20% stake, Oracle will have 12.5% and Walmart will have 7.5%, the reports say.
With this agreement, TikTok Global will become a company with a majority stake in US investors, but ByteDance will retain stakes in US operations.
The deal did not comply with President Trump’s request to sell part of TikTok’s operations in the US to a US company, a requirement outlined in a Trump decree signed in August.
However, Trump said the new agreement would create more jobs and taxes for the United States.
Oracle and Walmart released a statement saying that TikTok Global will create more than 25,000 new jobs and pay more than $ 5 billion in taxes in the United States.
