The White House has announced that US companies will now control TikTok's algorithm, and Americans will hold six of seven board seats for the app's US operations in a much-anticipated deal with China.
Press secretary Karoline Leavitt stated that a deal could be signed in the coming days, although there has been no comment from Beijing as of yet.
The US has sought to sever ties between TikTok and its Chinese parent company, ByteDance, citing national security concerns.
Previously, TikTok was warned that it must sell its US operations or face a complete ban. President Trump had deferred implementing this ban multiple times, with the deadline being extended to December.
Leavitt indicated that data and privacy for US TikTok users would be overseen by Oracle, a tech giant chaired by Larry Ellison, who is also closely aligned with Trump. The data and privacy will be led by one of America's greatest tech companies, Oracle, and the algorithm will also be controlled by America as well, she told Fox News.
After a phone call between Trump and China's President Xi Jinping, Trump reported that a deal had been approved, although confirmation from China was lacking. Trump described the call as productive and appreciated Xi's approval of the proposed arrangement, which reportedly involves the sale of TikTok's US operations to domestic investors.
On the other hand, China’s Commerce Ministry stated, China's position on TikTok is clear: The Chinese government respects the wishes of the enterprise, and welcomes it to carry out commercial negotiations in accordance with market rules and emphasized the need for a solution compliant with Chinese laws.
Negotiations appear to be hindered by questions over ownership of the algorithm that curates content for TikTok's 170 million American users. During a recent press conference in the UK, Trump avoided addressing whether an American buyer would need to develop a new algorithm, sparking further speculation.
After once calling for the app to be banned during his first term, Trump has shifted his stance, leveraging TikTok to engage younger voters during his 2024 presidential campaign.
In January, the US Supreme Court upheld a law mandating that unless ByteDance offloads its US operations, TikTok would be banned. The app briefly went dark before its ban was postponed.
The US Department of Justice has raised serious concerns regarding TikTok's access to data of US users, labeling it a substantial national security threat.
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