Is this news? Look, I don’t even know at this stage.
What I do know is that the White House has today published a press release which declares that U.S. President Donald Trump has “saved TikTok” while protecting U.S. national security, based on Trump signing a new executive order that approves the sale of TikTok to a U.S.-based consortium, which will be headed by Oracle.
According to the White House release:
“President Trump has determined that the divestiture outlined in a proposed framework agreement, in which TikTok’s U.S. application would be operated by a new joint-venture company based in the United States, is a ‘qualified divestiture.’”
According to the White House, Trump has signed a bill that essentially gives his blessing to the proposed deal, in which Oracle will become TikTok’s “security provider” and will “independently monitor and assure the safety of all operations in the U.S.”
“[TikTok U.S.] will be majority-owned by U.S. investors, operated in the U.S. by a board of directors with national security and cybersecurity credentials, and subject to strict rules to protect Americans’ data and our national security.”
So great news, right? After two years, the TikTok saga is finally over, and TikTok creators can all stop worrying about the app potentially being shut down in the U.S.
Right?
I mean, the release does also note that the Trump-approved deal “complies with the Protecting Americans from Foreign Adversary Controlled Applications Act by removing TikTok in the United States from China’s control.”
So it’s a done deal. Right?
Well, no.
While the Trump team is keen to tout its success, it seems that the Chinese government, which has the power to approve or reject said deal, isn’t sold on the details just yet.
As reported by state media outlet China Daily, Chinese officials are still concerned about “deeper issues beyond technology,” noting that while recent discussions on TikTok have been productive, they’re not over the line just yet.
As per China Daily:
“Future progress on major China-US agenda items, such as bilateral trade and TikTok operations in the United States, depends on whether Washington will faithfully follow through on what it has promised during the latest China-U.S. heads-of-state phone conversation.”
The report further notes that Trump and Chinese President Xi Jinping have both “expressed hopes for commercial negotiations regarding TikTok operations in the U.S.”
But:
"Through the talks, China has made clear that it supports Chinese companies' adding investment in the U.S., which the U.S. side has aimed for, while Washington should shape an inviting climate for investors, make the play fair, and achieve a win-win situation, rather than forcing a deal or blackmailing.”
Yeah, that doesn’t sound like Chinese officials are as keen on the deal as the Trump team at this stage.
But the White House is all in:
“President Trump found a solution for the 170 million Americans who use TikTok, ensuring users will be able to safely enjoy the same global TikTok experience and view content from around the world with the confidence that their data is secure in the United States.”
The release further notes that:
“President Trump has demonstrated time and again his ability to close deals that put America and its citizens first.”
So the White House is super confident that a deal will be finalized and established before December, when the latest extension of the TikTok sale deadline lapses, so much so that it’s put out a release saying that the deal is virtually done.
It seems, however, that the Chinese side is still weighing the details.
We’ll see if it plays out as Trump and Co. expect.
