US President Donald Trump extended the deadline for the parent company Tiktoku to sell his US operations to December 16th and avert the nationwide shutdown of the popular video sharing app.
Trump signed a powerful order on Tuesday to provide more time to complete the sale of a popular video sharing app, after recent interviews between US and Chinese negotiators.
Earlier Tuesday, Trump told reporters that he had reached an agreement with China over Tiktok when he left the White House for a state visit to the UK. However, he refused to name the participating company. Trump is ready to discuss a plan with Chinese leader Xi Jinping on Friday.
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US Minister of Finance Scott Bessnt said CNBC in an interview that the agreement was in line with the previously negotiated commercial conditions and suggested that Trump and XI would conclude an agreement this week.
“This agreement would not take place without proper guarantees for US national security,” Bessnt said. “It looks like we were also able to fulfill the Chinese interest,” he added.
Trump grants 4. Extensions
Trump’s executive order is the fourth extension that it has issued from the National Security Act, which requires that in January it will come into force in Tiktoku operations. Since then, Trump has ordered the Ministry of Justice not to force the law or other Tiktok companies.
Trump received another extension, despite the National Security Act 2024, which allows only one 90 -day extension of the deadline. This attitude opposed the Bipartisan consensus on the provision of sale or forbidding and raised concerns about the legality of the repeated extension of the President, Bloomberg informed.
Tiktok faced control in Washington, and the legislators feared that his Chinese ownership could provide Beijing’s approach to sensitive user data. In April 2024, former US President Joe Biden signed legislation, which requires to sell their operations in the US Tiktoku to sell her operations in the US or face nationwide ban within nine months.
On January 18th, a short video platform was temporarily blocked in the US. On the first day back in the oval office, however, Trump signed a executive order that delayed recovery for 75 days. The US President later extended this deadline twice, and the current due date is now on September 17th.
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What does extension mean?
Yesterday’s extension allows Tiktok to continue operation in the US and partners as Apple Inc. And Google, owned by Alphabet Inc., can organize a popular video application in their online stores, while the administration requires more time to negotiate an agreement with a being over a possible buyer.
Although several participating buyers have shown interest in Tiktok in the last year, Chinese officials in Beijing have the final power over these transactions and indicated the opposition to the agreement only at the end of August. Previously, the administration also proposed that they were approaching the agreement, so that it could not realize.
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Is Oracle a possible buyer?
On Tuesday, CNBC announced that Oracle Corp. retains the Tiktok cloud contract currently discussed, which could be completed within 30 to 45 days.
Oracle shares jumped up to 5.9% in New York on Tuesday. This year, the company’s shares increased by 85%, driven by a growing cloud infrastructure trade.
(With Bloomberg inputs)
(Tagstotranslate) President Donald Trump
