The Trump administration has alleged that
TikTok is a security threat because the Chinese
government could spy on app users’ personal
data. TikTok has denied it’s a security threat
but said it’s still trying to work with the
administration to resolve its concerns.
Trump in September gave his tentative blessing
to a proposal by ByteDance, the Chinese
company that owns TikTok, meant to resolve U.S.
national security concerns by having the U.S.
companies Oracle and Walmart invest in TikTok.
Oracle would manage U.S. user data under the
arrangement. But a federal agency still has to
review and finalize an arrangement.
A government deadline for ByteDance to
complete the deal passed on last week, and it’s
not clear what the status of the agreement is.
The Treasury Department, which chairs the
agency reviewing the deal, said that the agency
“is engaging with ByteDance to complete
the divestment and other steps necessary to
resolve the national security risks arising from
the transaction.”
The Trump administration’s aggressive tactics are
part of its latest attempt to counter the influence
of China. Since taking office in 2017, Trump has
waged a trade war with China, blocked mergers
involving Chinese companies and stifled the
business of Chinese firms like Huawei, a maker
of phones and telecom equipment.
While President-elect Joe Biden has said TikTok is
a concern, it’s not clear what his administration
will carry on the Trump administration’s ongoing
attempts to secure a ban, or increase the
involvement of U.S. companies.