October 24, 2020

Trump threatens to knock down TikTok deal if US doesn’t have “full control”


TikTok logo on an American flag
EFE

The president of U.S, Donald trump, threatened on Monday not to approve the agreement reached between Oracle and Walmart with the Chinese ByteDance swork TikTok if US companies don’t have “total control” about the resulting society.

Asked in an interview on Fox News about the confusion in recent hours regarding the presence of ByteDance in the new company that will be created to manage TikTok’s business in the US, TikTok Global, Trump said that expects the Chinese firm to completely disengage.

“(ByteDance) will have no link (to the new company), and if they do, we won’t approve the deal“said Trump, who also noted that if Oracle and Walmart” do not have full control “over TikTok Global, they will not consent either.

The US Government announced on Saturday that delayed a week the application of measures against TikTok, which was scheduled to go into effect on September 20, after Trump gave his “blessing” to the preliminary agreement with Oracle and Walmart so that it can operate in the North American country.

“I have given my blessing to the agreement, if they succeed it would be great and if not, it would also be fine, but it’s a great deal for the US.“said the president, who shortly after added that he approved the agreement” in concept “, but that the negotiations were still continuing.

However, since then, the Chinese and US parties to the agreement have given different versions on how TikTok Global will be structured.

According to the version of Oracle and Walmart -which will control 20% of the future firm-, most of the new company will be american propertyBut according to ByteDance they will control the remaining 80% until it goes public with an initial public offering in about a year.

The version of the agreement offered by ByteDance, therefore, would not satisfy the conditions of the executive order issued by Trump on August 14, which forced the operation by demanding that the Chinese company sell its business in the US or cease to operate in the country.

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