Did the US Successfully Take Over TikTok, Or Not?

Longtime Slashdot reader hackingbear writes: President Donald Trump signed an executive order Thursday that he says will allow TikTok to continue operating in the United States in a way that meets national security concerns. Trump's order will enable an American-led of group of investors to 'buy the app' (up to 80% ownership) from China's ByteDance, though the deal is not yet finalized and also requires China's approval. However, much about the deal is still unknown. So, did the U.S. successfully snatch TikTok from ByteDance? It is probably up to individual's interpretation.

As with any deals between U.S. and China, the devil is in the details. According Shen Yi, an internet influencer and a professor at Shanghai's Fudan University, what the U.S. investor will eventually take control of is an entity known as TikTok U.S. Data Security Company ('USDS'), which is a subsidiary of TikTok U.S. and is exclusively responsible to handle data security in the U.S.. ByteDance will continue, through its U.S. subsidiary 'ByteDance TikTok U.S. Company,' to operate business and other related activities (such as e-commerce, advertising for brands, and cross-border commercial activities). It is important to stress that 'Byte TikTok U.S. Company' remains 100% owned by ByteDance through its global TikTok subsidiary -- this arrangement has not changed. The TikTok algorithm remains the property of ByteDance, only licensed to USDS for use. This point was in fact explicitly clarified by a relevant official of China's Cyberspace Administration at the press conference following the Madrid talks.

After reaching the TikTok deal, Beijing and Washington are now selling it to their respective domestic audience, each highlighting the part of the deal that it can characterize as a win. Shen's details are not in conflict with the widely-reported account given by Karoline Leavitt, the White House Press Secretary, who emphasized 'a new board with six American directors out of seven.' Observers can also find the TikTok arrangement being very similar to that of Apple's iCloud operation in China being run by GCBD (AIPO Cloud (Guizhou) Technology Co. Ltd.) while Apple retain controls of the brand and business.

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