Chinese media cries foul at Trump’s stance on TikTok deal

Chinese media cries foul at Trump's stance on Tik Tok deal

China is unlikely to approve an "unfair" deal Oracle Corp and Walmart Inc said they have struck with ByteDance over the future of video-streaming app TikTok, the state-backed Global Times newspaper said in an editorial. It is based in Beijing, and it said that it would hold 80% of the company's stake.

On Monday, Chinese tech conglomerate holding ByteDance and American software industry titan Oracle Corp. had been at daggers drawn over a planned TikTok deal as the aforementioned companies, which were expected to follow through an accord with the White House to divest the ByteDance-owned TikTok's U.S. operation, had issued largely dialectical statements over the terms of the deal that would allow TikTok to continue to operate in the United States, raising doubts over President Trump's preliminary backing of the deal. But ByteDance said the $5 billion discussed was the projected amount of federal income taxes TikTok Global would pay over the next several years.

"They are going to buy it", Trump said in an interview with Fox News, referring to Oracle and Walmart. "You think TikTok is a company from a small country?"

"There's no way the Chinese government will accept your demand".

The unidentified author of the Global Times editorial objected to there being only one board seat reserved for a Chinese national, as well as the stipulated inclusion on the board of a US-approved "national security director". For its part, TikTok denies the charge, and even the Central Intelligence Agency recently said it has not seen evidence of the Chinese government accessing user data.

The three firms have issued conflicting statements over the terms of an agreement they hope will allow ByteDance's video app TikTok to continue to operate in the United States, where the government plans to ban the app on security grounds.

Chinese officials said that the TkTok deal can not be completed without their approval.

ByteDance and the commerce ministry did not immediately respond to requests for comment.

That vow, repeated by the president on Saturday at a campaign rally in North Carolina, was part of a concession that dealmakers offered to convince President Trump to green-light a transaction in which a new board comprised of USA citizens would oversee a new US -based company and co-owned by Oracle Corp and Walmart.

However, the sides have framed the deal differently in public statements.

His comments came after ByteDance insisted that it would retain a controlling stake in the new US-based company in partnership with Oracle and Walmart, called TikTok Global.

Another Global Times editorial published late on Tuesday characterised the deal as "extortion".

It also denounced the need for ByteDance to reveal source code to Oracle as part of the latter's role of "trusted technology partner" and criticised the likelihood of TikTok Global blocking Chinese access to its app.

TikTok has never been available in China.

"As TikTok and Douyin should have the same source code, this means the US can get to know the operations of Douyin", the Global Times said. "Washington when it wants to curb the rise of any companies from foreign countries that are out-performing their USA peers", the editorial said.

Speaking to reporters before departing the White House, Trump said that he had given a "preliminary OK" to a plan for Oracle and Walmart to take stakes in a new U.S. company to run TikTok, which is owned by China's Bytedance.



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