Popular video app TikTok announced on Saturday that it had signed Oracle as its U.S. technology provider and Walmart as a business partner, which US President Donald Trump called “fantastic.”
“We are pleased that the proposal by Tiktok, Oracle, and Walmart will address the security concerns of the US administration and resolve questions aboutTiktok’s future in the United States,” said AFP, a spokesman for Tiktok, which owns China’s Fight Dance.
Oracle will become “a trusted technology provider that will be responsible for hosting all U.S. user data and securing relevant computer systems to ensure that U.S. national security requirements are fully met,” the spokesman said. “We are also currently working on a business partnership with Walmart.”
He went on to say that the companies were “maintaining and expanding” Tiktok’s global headquarters in the United States and creating 25,000 new jobs.
Trump has previously praised the deal as “fantastic.”
“I have given this contract as my blessing,” he said. “If they do it, that’s fine. If they don’t, that’s fine too.”
Trump’s Allegation on Tiktok
Trump has been claiming for weeks that Tiktok has been collecting user data for Beijing, never providing evidence for his allegations.
In early August, he gave Bite Dance until September 20 to hand over Tiktok’s U.S. operations to an American company.
Also on Friday, the Trump administration ordered a ban on downloading the video-sharing app, as well as China-owned news site WeChat, escalating tensions with Beijing over technology.
Following Tiktok’s announcement, the United States delayed downloading the app until September 27.
Trump said “security will be 100 percent” and that companies will use separate cloud servers.
The president said the deal would lead to the creation of a new company headquartered in Texas, which has “no ties to China” but will still be called Dictok.
Trump also said that the companies involved would contribute $ 5 billion to the “education of American youth.” He had previously said that the federal government deserved the cut to recognize the deal.
TikTok’s spokesman only confirmed the creation of new jobs, and the company’s global headquarters will be in the United States.
Oracle confirmed its role in the deal, saying that Dictok’s decision “had greatly affected Zoom’s recent successes in moving most of its video conferencing capabilities to the Oracle public cloud.”
Walmart did not immediately respond to AFP’s request for comment.
WeChat, owned by Tencent, will lose operation in the United States from Sunday, following a Friday U.S. order against Chinese applications.
Following the announcement of the Tiktok-Oracle-Walmart agreement, Digtok users will be barred from installing updates from September 27, but they will have access to the service until November 12.
That deadline is likely to tie the deal with Walmart and Oracle to address Washington’s security concerns, protect data for popular use.
The brand of dictatorial short, humorous phone videos has become very popular, especially among young people, with over 100 million users in the United States alone.
As Trump faces a fierce re-election campaign, US officials have described the steps needed to protect him from Chinese intelligence through platforms.
But in response, China’s Ministry of Commerce on Saturday denounced the United States as “bullying”, saying it violated international trade rules and had no evidence of any security threat, shortly before launching a mechanism to allow foreign companies.
China’s long-awaited list of “unreliable companies” is seen as a weapon for Beijing to retaliate against the United States, which has used its own “list of companies” to expel Chinese telecommunications company Hawaii from the U.S. market, in addition to recent moves against TikTok and WeChat.
Trick critics say that while the dangers of dictatorship are not clear, the embargo raises concerns about the government’s ability to restrict free expression. The ban exacerbates the war with Beijing over technology, which, some analysts say, is a security concern.