US President Donald Trump on Friday signed an executive order approving a deal involving video-sharing platform TikTok, marking a major shift toward American ownership and control of the app.
After signing the order, Trump emphasized that the US would exercise ‘tight control’ over the app, calling it a ‘very good deal’ for Washington.
Trump said his decision followed a recent telephonic discussion with Chinese President Xi Jinping on September 20, during which the TikTok issue was a key topic.
“I had a very good talk with President Xi, a lot of respect for him. Hopefully, he has a lot of respect for me, too. We talked about TikTok, and he gave us the go-ahead,” Trump stated.
American Investors To Take Charge Of App
Trump assured that with the new arrangement, TikTok would be managed by American investors and companies, addressing concerns about data security and safety.
“It’s run by American investors and American companies, great ones, the biggest. The young people really wanted this to happen,” he added.
Oracle’s Larry Ellison to Play Central Role
Highlighting the role of US firms, Trump pointed to Oracle’s involvement, saying company co-founder Larry Ellison and Oracle would play a crucial role in ensuring the platform’s security and operations. Oracle Corporation is headquartered in Austin, Texas.
American Control Strengthens, Chinese Share Shrinks
Reports from The Wall Street Journal and The New York Times suggested that under the proposed arrangement, US investors would control 80 per cent of TikTok, while Chinese firms, including ByteDance, would retain the remaining 20 per cent.
Trump also told reporters at the Oval Office that Xi Jinping had already approved the deal.
“I had a good call with President Xi. He approved the TikTok deal. We look forward to getting the deal closed. We have to get it signed; it could be a formality. The TikTok deal is on its way, and the investors are getting ready,” he said.
TikTok Issue In US
The TikTok matter came into focus after the Biden administration passed legislation mandating that the app divest its Chinese ownership or face a ban. Following Trump’s discussions with Xi, TikTok’s parent company ByteDance released a statement confirming its commitment to advance work required under Chinese law to ensure TikTok can continue operations in the US.
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