TikTok to maintain U.S. oversight over its board and critical algorithm, according to the White House, as part of a new agreement with China
The TikTok deal, which has been a topic of discussion for several weeks, is still in progress, according to President Donald Trump's latest statement. The president's team is working closely with Chinese counterparts to finalise the details of the TikTok deal.
The White House press secretary has stated that the deal needs to be signed, and a significant development is that the TikTok algorithm in the United States will be controlled by a newly established American company. This company will be governed by a seven-member board, with six members being Americans and one appointed by the Chinese parent company ByteDance. ByteDance will hold less than 20% of the shares, ensuring that the algorithm will be secured, adapted, and operated within the United States outside ByteDance’s control. User data will be stored in Oracle's US cloud.
Oracle will also be responsible for the app's data and security, but no new information about these aspects has been provided yet.
President Trump has signed orders allowing TikTok to keep operating in the United States, and he has expressed confidence that the TikTok deal will be finalised soon. Trump has also stated that American investors are lined up for the TikTok deal.
Interestingly, Americans will hold a majority of seats on the board overseeing U.S. operations of TikTok, but no new information about the composition of this board has been provided as of yet.
In a recent phone conversation, Trump and China's Xi Jinping discussed the TikTok deal, but the Chinese government's statement did not clarify what Xi had agreed to regarding a sale of a controlling stake by TikTok's Chinese parent company. Xi has been described as 'a gentleman' by Trump regarding the TikTok matter.
However, Trump did not clarify whether China will control the TikTok algorithm, and no specific details about the control of the algorithm were provided by either Trump or the Chinese government.
A potential complication arises from a TikTok ban legislation that was passed by Congress, set to take effect in January. Whether this legislation will impact the TikTok deal remains to be seen.
As the deal progresses, the TikTok deal with China ensures U.S. companies control the algorithm that powers the app's video feed. The algorithm for TikTok will also be controlled by America, according to the White House.
Leavitt, a key figure in the negotiations, anticipates the TikTok deal to be signed in the coming days. It appears that the TikTok saga is nearing its conclusion, with the future of the popular app becoming increasingly clear.
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