The Beijing government does not seem willing to let go of TikTok so easily. China has a say in the partnership with Oracle and it looks like it will be extremely pressured.
TikTok hoped it could get rid of the ban in the United States through a partnership with Oracle, a deal that came after Microsoft’s offer was turned down. But this agreement would also need the agreement of the Beijing Government, which contradicts the position that TikTok has held over time.
The owners of the application, those from ByteDance, loudly claimed that the Chinese Government has no influence, in the context in which they rejected the accusations regarding possible security risks. Now, that doesn’t seem to be the case. The Chinese press writes that the agreement between TikTok and Oracle will not be approved by the Beijing Government.
The Chinese have looked more closely at the terms and conditions and seem to have made a decision.
China does not let TikTok out: what it says about the agreement with Oracle
ByteDance had agreed with Oracle and Walmart to create a new company, TikTok Global, to take over virtually only US TikTok operations. But while Oracle and Walmart claim that TikTok Global will be an American company with a board of directors composed mostly of Americans, ByteDance claims that TikTok Global will be its American subsidiary in which it will hold 80% of the shares.
Here, too, the communist government in Beijing decided to intervene and declare that it did not agree with this agreement, which seems to be designed by Americans for Americans.
“It is clear that these conditions clearly show Washington’s style of intimidation. These conditions affect China’s national security, interests and dignity. From the information provided by the US, the agreement is unfair. He obeys Washington’s unreasonable demands. It is hard for us to believe that Beijing will approve such an agreement, “an editorial published in the Global Times, a nationalist tabloid published by the People’s Daily, the official media outlet of the Chinese Communist Party, reads.
At the end of last week, ByteDance, Oracle and Walmart announced that they had reached an agreement to meet the demands expressed by US President Donald Trump for TikTok to be sold to an American company, otherwise it would be banned in the US. However, the two parties issued contradictory statements on the terms of the agreement.
In other words, everyone said what they understood, which raises many questions about this understanding.
TikTok has about 100 million users in the US and, as everywhere else in the world, is especially popular among young people.