As Trump Boasts TikTok's Deals With Walmart And Oracle, It's Chinese

Joanna Estrada
September 24, 2020

The proposed deal of TikTok with Oracle and Walmart mandates the creation of a new American company - incorporated in Texas - and the prospect of 25,000 new jobs.

The transaction would form a new company called TikTok Global, in which Oracle and Walmart would together take a 20 percent stake.

Notably, shortly after the release of ByteDance statement that it would be holding 80 per cent stake in the newly formed TikTok entity which in effect would enable TikTok to continue operation for its 100 million US users, Oracle said in a statement on Monday that the ByteDance stakes in TikTok Global would be distributed among ByteDance investors and the Beijing-based conglomerate holding would no longer have any stake in TikTok's global operation.

Trump added the deal will include a $5 billion fund for U.S. education, though he did not say which companies would be making the payment.

"We're pleased that today we've confirmed a proposal that resolves the administration's security concerns and settles questions around TikTok's future in the U.S.", TikTok interim global head Vanessa Pappas said in a statement.

All U.S. data and security systems would be hosted by Oracle.

The article says, "It is clear that these articles (terms) extensively show Washington's bullying style and hooligan logic".

White House Press Secretary Kayleigh McEnany said that the USA is working through the deal.

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Earlier on Monday, Trump told Fox News that Oracle and Walmart would have "total control" over TikTok.

The Global Times is a tabloid published by the People's Daily, the official newspaper of China's ruling Communist Party. On the other hand, Oracle and Walmart have mentioned in a statement that TikTok Global will be an "independent American company".

And it should be remembered that China's Ministry of Commerce last month revised a tech export control list that experts said would give it regulatory oversight over any TikTok deal.

The unidentified author of the Global Times editorial objected to there being only one board seat reserved for a Chinese national, as well as the stipulated inclusion on the board of a U.S-approved "national security director".

But TikTok's parent firm ByteDance put out its own contradictory statement.

TikTok has never been available in China.

"As TikTok and Douyin should have the same source code, this means the US can get to know the operations of Douyin", the Global Times said. For its part, TikTok denies the charge, and even the Central Intelligence Agency recently said it has not seen evidence of the Chinese government accessing user data.

Beijing-based ByteDance itself has only two Chinese nationals on its five-member board.

Other reports by Click Lancashire

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