Oracle could play key role in TikTok deal between Trump administration and China, sources say
Technology giant Oracle is part of a group of companies that are in talks to help TikTok continue its operations in the United States, pending a finalized deal between the U.S. and China. Sources familiar with the negotiations revealed to CBS News that the exact details of the agreement are still unclear, but it will involve multiple firms. It remains uncertain to what extent Chinese companies, including ByteDance, TikTok’s current parent company, will be involved in the deal, and who will have control over TikTok’s influential recommendation algorithm. President Trump and President Xi are expected to discuss the matter on Friday.
Efforts to reach out to Oracle executives and a White House spokesperson were unsuccessful, while a TikTok spokesperson declined to comment on the ongoing negotiations. Treasury Secretary Scott Bessent mentioned that the commercial terms have been agreed upon during discussions in Madrid with Chinese officials. Chinese Vice Minister of Commerce, Li Chenggang, emphasized China’s commitment to safeguarding national interests and the legitimate rights of Chinese enterprises in accordance with relevant laws and regulations.
As the discussions unfold, the Chinese Embassy in Washington has not yet responded to requests for comments. President Trump remained cautious about the potential deal during a press briefing in the Oval Office, stating that the outcome depends on China’s response. The concern over TikTok’s operations in the U.S. dates back to last year when Congress passed a bill, signed by former President Joe Biden, giving ByteDance an ultimatum to divest from TikTok or face a ban. Despite the Supreme Court upholding the law, President Trump has issued orders delaying its enforcement, including a recent extension until Wednesday.
The TikTok divestiture law was introduced amid bipartisan concerns regarding potential national security risks associated with the popular video-sharing app. These concerns revolve around fears of Chinese government influence over user data and platform manipulation. Despite TikTok denying any Chinese influence, the issue has been a focal point throughout Mr. Trump’s presidency. Initially aiming to ban TikTok in the U.S. in 2020, citing national security and data privacy concerns, Mr. Trump’s decision was later blocked by a judge. However, in a shift of stance, he expressed support for the app, attributing it to his success among younger voters in the last election.
In conclusion, the negotiations surrounding TikTok’s operations in the U.S. reflect the complex interplay between national security, technology, and international relations. The involvement of companies like Oracle highlights the intricate web of interests at play as the U.S. and China seek to navigate a delicate balance in the tech industry. As discussions progress, the final agreement will likely have far-reaching implications for the future of TikTok and its presence in the American market.
