Trump grants TikTok a temporary stay in the U.S.
In a recent development, President Donald Trump has extended TikTok's stay in the US market, allowing the popular video-sharing app to continue operations until at least January 19. This marks the third time Trump has granted an extension to the app, which has been under scrutiny due to its Chinese ownership and the potential risks it poses to national security.
Despite the repeated extensions, Trump's decisions have no legal basis, as the law passed last year only allows for a one-time extension of 90 days in the event of successful sales negotiations. The latest announcements suggest that the current pause meets this condition, but the details of the agreement are yet to be finalised.
According to reports, TikTok would continue to use the algorithm developed in China to determine which videos are shown to users in the US. This has raised concerns among critics in the US, who see this software as a potential risk for the US government to influence public opinion.
The US government has stated that there is a "framework for a TikTok deal" with China, where the current owner Bytedance is based. However, the US law stipulates that neither the Chinese government nor Bytedance may have control over the algorithm. To comply with this requirement, American investors, including Oracle, Silver Lake, and Andreessen Horowitz, are set to receive 80 percent of a new US subsidiary of TikTok after an agreement. The rest of the new subsidiary would remain with Chinese shareholders.
Oracle, backed by Trump supporter Larry Ellison, will retain its role as TikTok's technical service provider in the US. The founders of Bytedance, including Zhang Yiming, only hold a 20 percent stake but reportedly maintain control through shares with more voting rights. TikTok and Bytedance, the Chinese parent company, deny this allegation.
China introduced a rule during Trump's first term requiring government approval for the sale of software algorithms abroad. Bytedance, with a large headquarters in Beijing, is therefore bound by many Chinese regulations. However, the company is 60 percent owned by international investors and based on the Cayman Islands.
US Treasury Secretary Steve Mnuchin stated that Trump and Chinese President Xi Jinping would finalise the agreement in a conversation on Friday. The exact terms of the deal are yet to be disclosed, but it is expected to address the concerns around data privacy and national security.
As the deadline approaches, the fate of TikTok in the US remains uncertain. The app has become a popular platform for millions of users, and its removal could have significant social and economic implications. The final agreement between the US and China is eagerly awaited, and it remains to be seen how this saga will unfold in the coming weeks.
Read also:
- United States tariffs pose a threat to India, necessitating the recruitment of adept negotiators or strategists, similar to those who had influenced Trump's decisions.
- Weekly happenings in the German Federal Parliament (Bundestag)
- Southwest region's most popular posts, accompanied by an inquiry:
- Discussion between Putin and Trump in Alaska could potentially overshadow Ukraine's concerns
