President Trump is said to be orchestrating a potential solution for TikTok that may not completely sever the ties between the app and its Chinese parent company. Legal challenges could be overcome due to the wording of the U.S. law mandating the separation and Trump's influence over the GOP-led Congress.
The legislation passed by Congress mandates a "qualified divestiture" of TikTok, limiting the Chinese parent company's ownership to 20%. The law grants the president the authority to determine if this condition has been met, allowing Trump flexibility in finalizing a deal before a potential ban on April 5.
Current negotiations suggest that major non-Chinese investors in ByteDance could increase their stakes and acquire TikTok's U.S. operations, lowering Chinese ownership below the required threshold. The proposed arrangement may assign Oracle to safeguard American data on TikTok to prevent access by China.
While some argue that Chinese involvement in TikTok must be entirely eliminated to protect national interests, others find the proposed measures inadequate. ByteDance, as per Chinese law, is obliged to share user data if requested by the Chinese Communist Party.
Concerns have been raised by U.S. intelligence officials about potential misuse of American data by the CCP and access through TikTok's algorithm. Legislation signed by former President Joe Biden in April reinforced the divestment requirement for TikTok or facing a ban, a law upheld by the Supreme Court against challenges from TikTok and its users.