https://www.gatestoneinstitute.org/16537/tiktok-china-algorithm
“The more reporting I do on this the more it is a sleazy back room deal that protects no one and advantages Trump supporters and, inexplicably, the Chinese government.” — Kara Swisher, America tech journalist and guru, Twitter, September 20, 2020.
“ByteDance in driver seat, algorithm in Chinese hands.” — Eunice Yoon, CNBC’s Beijing Bureau Chief, Twitter, September 21, 2020.
“The TikTok team retains stewardship over the app.” — Shen Yi, professor, Fudan University, China Daily, September 21, 2020.
As Senator Marco Rubio told Maria Bartiromo on Sunday Morning Futures on the 20th of this month, control of the source code is critical… Beijing, not surprisingly, seems determined to keep all of TikTok’s secret sauce.
What’s not [for China] to like? Beijing-based ByteDance gets a lot of cash — the app will carry a valuation that could be as high as $60 billion — and the Communist Party will be able to continue to use TikTok for malign purposes.
The only acceptable arrangement, however, is to completely sever China from TikTok’s U.S. operations — or ban the app entirely.
ByteDance Ltd., the privately owned Chinese technology company, will soon sell minority ownership stakes in the TikTok app to American companies Oracle Corp. and Walmart Inc.
Oracle will become the “secure cloud technology provider” for a new U.S. company, TikTok Global, which will own most of the app’s worldwide operations.
The proposed arrangement, however, does little to address the most important U.S. national security concern with the wildly popular video-sharing platform.
Using his emergency powers, President Trump on August 6 prohibited, after the expiration of a 45-day period, Americans from any transaction with ByteDance or any of its subsidiaries. As a practical matter, the order contemplated the closure of the TikTok app if it was not sold to an American company. The order has been extended.