On August 6, Trump signed an executive order banning U.S. companies from doing business with ByteDance, alleging that the application presented risks amounting to a “national emergency.”
The order states that the app, which has reportedly been downloaded 175 million times in the United States, captures “vast areas” of information and “threatens to allow” Chinese government officials to track Americans.
TikTok has repeatedly denied the allegations. He said his US user data is stored in the US and there is only one backup in Singapore. It also said its data centers are located outside of China, which suggests the data is not subject to the Chinese authority.
Microsoft has said it will not acquire part of TikTok’s operations after the owner ByteDance rejects its offer. After weeks of public talk and back-and-forth involving the Trump administration, Microsoft has ultimately failed in its attempts to acquire the app.
TikTok has entered into a partnership deal with software giant Oracle, a landmark deal that could redefine how the United States and China manage the reach of their local tech companies.
As part of the proposed deal, Oracle will be ByteDance’s technology partner and take over the management of user data in the United States, the sources said. Oracle is also negotiating a stake in TikTok’s assets in the United States, the sources added.
It’s unclear whether Trump, who wants an American tech company to own a majority stake in TikTok in the United States, will approve the proposed deal.
ByteDance and Oracle did not immediately respond to requests for comment. The White House declined to comment.