Trump Insists On Total US Control Over TikTok In Any Deal

Joanna Estrada
September 23, 2020

On Monday, Chinese tech conglomerate holding ByteDance and American software industry titan Oracle Corp. had been at daggers drawn over a planned TikTok deal as the aforementioned companies, which were expected to follow through an accord with the White House to divest the ByteDance-owned TikTok's USA operation, had issued largely dialectical statements over the terms of the deal that would allow TikTok to continue to operate in the United States, raising doubts over President Trump's preliminary backing of the deal. Walmart Chief Executive Officer Doug McMillon would have a seat on TikTok Global's board of directors, and four out of five members will be from the USA, according to a statement from Walmart.

A woman rides past Oracle's headquarters in Beijing yesterday.

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The article says, "It is clear that these articles (terms) extensively show Washington's bullying style and hooligan logic. They hurt China's national security, interests and dignity", the newspaper said in an editorial in its English edition published late on Monday. "And if they do, we just won't make the deal". It caters to the unreasonable demands of Washington. The algorithm that recommends videos to users is believed to have made the app such a success.

The Oracle-Walmart deal came together in time to avoid Trump's USA ban of TikTok for national security reasons.

However, the sides have framed the deal differently in public statements. TikTok's parent company ByteDance claimed that it will retain 80% in the new entity and the other 20% will be divided as 12.5% to Oracle and 7.5% to Walmart.

Chinese state-backed Global Times in a report on Monday said that "Trump's new threats will unlikely go unchecked in China". On Saturday, Trump also gave his blessing to the "Walmart-Oracle" deal.

Numerous new American jobs will likely be in engineering, content moderation and security roles, given the US government's intense focus on the app's data privacy policies, said Dan Ives, a technology analyst at Wedbush Securities.

"We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok's American users, and users throughout the world", Oracle CEO Safra Catz said in a statement. "If the reorganization of TikTok under USA manipulation becomes a model, it means once any successful Chinese company expands its business to the United States and becomes competitive, it will be targeted by the U.S. and turned into a US-controlled company via trickery and coercion, which eventually serves only USA interests". But ByteDance check's the President's boast regarding the deal.

ByteDance has also said Oracle's ability to inspect TikTok's source code before investing is akin to previous instances of US companies such as Microsoft Corp sharing source code with Chinese technology experts. Final decision will be at the discretion of the Taipei Times. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

Other reports by Click Lancashire

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