What's Happening?
President Trump has successfully negotiated a deal with China regarding the ownership of TikTok, a popular social media platform with over 200 million U.S. users. Under the new agreement, ByteDance, the Chinese company that owns TikTok, will retain a 19.9%
stake in the U.S. business. The remaining shares are distributed among Oracle and several U.S. investment firms, each holding no more than 15%. This deal follows bipartisan legislation that required Chinese divestment from TikTok to address national security concerns. Despite the new ownership structure, ByteDance will continue to control TikTok's algorithm, raising questions about compliance with the 2024 law that aimed to sever operational ties between the Chinese company and the U.S. version of TikTok.
Why It's Important?
The deal is significant as it attempts to address national security concerns related to Chinese influence over a platform widely used by young Americans. The control of TikTok's algorithm by ByteDance remains a contentious issue, as it could allow for political manipulation and influence over U.S. users. The ownership change is intended to mitigate these risks, but the continued involvement of ByteDance in algorithm management suggests that the core concerns may not be fully resolved. The situation highlights the ongoing tension between the U.S. and China over technology and data privacy, with potential implications for U.S. political divisions and user privacy.
What's Next?
The new ownership structure of TikTok is likely to face scrutiny from U.S. lawmakers and the public. There may be calls for congressional hearings to ensure transparency and accountability in how TikTok operates under the new arrangement. The involvement of individuals with ties to President Trump in the new TikTok board could also attract attention and raise questions about potential conflicts of interest. The company may need to provide more detailed information about how it plans to protect user data and prevent undue influence from Chinese interests.
