Daijiworld Media Network- Washington
Washington, Sep 17: In a major development, US President Donald Trump on Tuesday announced that a deal has been reached with China to keep TikTok operational in the United States.
Speaking to reporters outside the White House before leaving for a state visit to the UK, Trump said, “We have a deal on TikTok. I’ve reached a deal with China, and I will be speaking to President Xi on Friday to confirm everything.”
The popular short-video platform, owned by Chinese tech giant ByteDance, had been facing a shutdown in the US unless its American operations were sold. Although Trump had earlier set deadlines for the ban, he has extended it multiple times, with the latest extension now pushing the deadline to December 16.
According to reports in The Wall Street Journal, the agreement being shaped would place TikTok’s US business under a new entity controlled by an investor consortium comprising Oracle, Silver Lake, and Andreessen Horowitz. US investors are expected to hold around 80% stake in the new firm, with Americans dominating the board and one government-appointed member.
As part of the deal, TikTok’s US users will migrate to a new app currently being tested. The app will use ByteDance’s licensed content-recommendation algorithms, considered the backbone of TikTok’s global success.
Sources indicated that Oracle will continue hosting TikTok’s US servers, addressing concerns of American lawmakers over data security and possible sharing with China.
Meanwhile, China’s cyberspace authority confirmed a “framework agreement” but stressed that no arrangement would compromise the interests of Chinese firms. Wang Jingtao, deputy head of the administration, said the agreement involves licensing of algorithms and intellectual property rights, adding that Beijing would review and approve all technology exports linked to TikTok.
The announcement comes against the backdrop of wider US-China trade negotiations, with both sides eyeing a breakthrough ahead of key global summits.