Trump postpones TikTok ban's enforcement date further following agreement on basic terms with Chinese authorities
In a recent turn of events, President Donald Trump has extended the deadline for TikTok to sell its U.S. operations until December 16, marking the fourth time he has bypassed federal law to prolong the deadline. This decision comes after a meeting in Madrid between U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier He Lifeng, where a framework for the deal was announced.
The framework aims to switch TikTok's assets to U.S. ownership for its operations in America. However, the deal's implications are a subject of debate, with Syracuse University political science professor Dimitar Gueorguiev suggesting that it could be a Pyrrhic victory. He argues that the famous TikTok algorithm has lost much of its mystique, with copycat efforts showing that the secret was not the code itself but TikTok's early-mover advantage and network effects.
Gueorguiev further contends that any U.S. buyer of TikTok is purchasing market share and user base, not transformative technology. This sentiment is echoed by Trump, who stated that he hates to see value like that thrown out the window.
In a surprising twist, President Trump announced that TikTok's U.S. operations would be taken over by a consortium led by Oracle, with American investors including venture capital firms Andreessen Horowitz and Silver Lake also participating. This deal, reportedly essentially agreed in September 2020, was announced after talks between American and Chinese government officials.
China's international trade representative, Li Chenggang, has stated that a 'basic framework consensus' has been reached to cooperatively resolve TikTok-related issues. However, the details of the deal are yet to be fully disclosed, and Trump has mentioned there are companies that want to buy TikTok, with further announcements expected soon.
The original deadline set by Congress was January 19, 2021. With the extension, the fate of TikTok in the U.S. remains uncertain, with some questioning whether the deal ultimately means little as its novelty has 'slowly faded.' Trump has also mentioned that he will discuss TikTok with Chinese President Xi Jinping on Friday, adding another layer of complexity to the situation.
As the situation unfolds, it's clear that the TikTok saga is far from over. The deal, if it goes through, will have significant implications for the tech industry and U.S.-China relations. Stay tuned for further updates.
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