Trump’s TikTok deal still worries GOP China hawks — but here’s why they’ll go along | Latest Tech News
GOP China hawks are anticipated to reluctantly help President Trump’s efforts to save TikTok from going darkish in the US – despite lingering issues about US security, On The Money has discovered.
Key Republicans have been briefed earlier this week about the president’s new US-controlled company that will home the wildly standard and controversial short-video app – including how it operates the all-important suggestion algorithm.
At the closed-door briefing, administration officers told US lawmakers and staffers how a new possession construction will take away the algorithm’s Chinese adware and make the new TikTok protected for US customers – a essential measure to comport with a law that says the app must be banned if there’s any hint of Chinese control.
Presindet Trump signed an govt order on Thursday that offers American buyers majority control of TikTok. AFP via Getty Images
As first reported by The Post, the new TikTok algorithm might be a model of the Chinese algorithm owned by Beijing-based ByteDance that might be reformatted by Oracle, the software program giant co-founded by billionaire Trump backer Larry Ellison.
Nevertheless, Congressional staffers stay skeptical whether or not the new algorithm could be rewritten to be utterly protected from Chinese espionage given some of the wonky particulars of the deal disclosed during the briefing, according to people with direct data of the matter. The algo will still be China’s and might be leased to the new US company.
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“From a national security standpoint this isn’t so great,” said a particular person with direct data of the briefing. “The algo will be leased by the Chinese to the US TikTok for 10 years and Oracle won’t have complete say in terms of how to change it.”
A press official for Oracle had no rapid remark as did a Trump spokesman.
As first reported by The Post, the new TikTok algorithm might be a model of the Chinese algorithm owned by Beijing-based ByteDance that might be reformatted by Oracle. REUTERS
In addition to issues over the algorithm, some lawmakers concern the Chinese would be the largest winner from the deal, gleaning around 50% of the new company’s income given the 20% possession stake ByteDance will keep in the new company, and the fee of the licensing settlement for the algorithm from ByteDance.
In fact, the fee of the algorithm, which is being paid from TikTok revenues, has decreased the valuation of the new company from the anticipated $40 billion to around $16 billion.
At a closed-dorr briefing, administration officers told lawmakers and staffers how a new possession construction will take away the algorithm’s Chinese adware and make the new TikTok protected for US customers. ZUMAPRESS.com
Oracle plans to temporary Congress in the approaching weeks and hearings could also be held in the months forward. US lawmakers are reluctant to buck President Trump, who is said to think about the deal key to his broader negotiations with China over commerce.
“I don’t think this is a hill anyone in the Republican Party is going to die on given how much the president wants this deal,” said a particular person close to the GOP China hawk wing.
Sources observe that the Congressional ban law’s interpretation of “control” – with respect to both possession and the algorithm – rests largely with the president. Trump and Vice President JD Vance, who performed a key position in hammering out the new TikTok construction, imagine the US security safeguards are adequate to comport with the law.
Trump was a TikTok hater during his first time period, and tried to ban the app in the US believing it was used by the CCP for spycraft. But he’s since had a change of coronary heart, attributing his victory in the 2024 election partly to his marketing campaign’s flooding TikTok with pro-MAGA content.
In April 2024, former President Biden signed bi-partisan laws banning TikTok from US app shops if it didn’t relinquish Chinese control. Trump has issued govt orders stopping the ban from going down until a new US TikTok deal may very well be cobbled together. That deal was finalized Thursday.
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