BEIJING (Reuters): ByteDance's proposal for US software firm Oracle Corp to become a technology partner in its TikTok app will ultimately need approval from both Chinese and US officials, the company said on Thursday (Sept 17).
The proposal, submitted to the Trump administration over the weekend, envisages Oracle becoming a “trusted” technology partner and making TikTok Global a US-headquartered company. A person with knowledge of the matter told Reuters that ByteDance is to hold majority ownership of TikTok.
US President Donald Trump has ordered ByteDance to divest TikTok amid US concerns user data could be passed to the Chinese government. He has said he would ban TikTok in the United States as early as Sunday if ByteDance does not comply.
The company also told Chinese newspaper Global Times on Thursday that a sale of TikTok’s operations or technologies is not included in its proposal to the United States. ByteDance declined to comment when asked about this detail by Reuters.
Trump on Wednesday raised questions about ByteDance’s plans to keep a majority stake in TikTok’s US operations and said he did not favour the idea of the Chinese firm retaining control, after six Republican lawmakers urged him to reject the proposal.
China late last month updated its export control rules to give it a say over the transfer of technology, such as TikTok’s user recommendation algorithm, to a foreign buyer. Chinese officials have said ByteDance should not be coerced by the United States into a deal.