Trump Declares Xi Jinping's Approval Paved Way for TikTok Deal

In a significant development concerning the future of the popular video-sharing app TikTok in the United States, then-President Donald Trump announced that Chinese President Xi Jinping had given his blessing to the proposed deal. This agreement, which aimed to circumvent a potential ban of the app in the US, involved American companies Oracle and Walmart acquiring substantial stakes in a new entity, TikTok Global.

Speaking to reporters, Trump explicitly stated, "I have great respect for President Xi.

He approved the deal. If he didn't approve the deal, it wouldn't have happened." This remark underscored the critical role Beijing played in the negotiations, highlighting the intricate geopolitical dynamics at play behind what appeared to be a corporate restructuring. The proposed deal was designed to allay US national security concerns that the data of American users could be accessed by the Chinese government through TikTok's parent company, ByteDance.

As part of the complex arrangement, Oracle was set to become TikTok's secure technology provider, taking a 12.5% stake in the new company, TikTok Global.

Walmart, a retail giant, was also slated to acquire a 7.5% stake, contributing to a combined American ownership of 20% in the new venture. The intention was for TikTok Global to be headquartered in the US, with four out of its five board members being American citizens.

Adding another layer of intrigue, Trump also mentioned a controversial aspect of the deal: a supposed $5 billion payment to an "education fund." This particular claim, however, was swiftly disputed by ByteDance.

The Chinese tech giant clarified that it was unaware of any such fund and that their existing tax obligations in the US would be fulfilled as required by law. ByteDance suggested that the President's statement might have stemmed from a misunderstanding regarding their ongoing investment and contribution to the American economy.

The entire saga surrounding TikTok highlighted the escalating tech rivalry and national security anxieties between the US and China.

While the deal aimed to ensure TikTok's continued operation for its millions of American users, it also underscored the unprecedented level of governmental intervention in the operations of a global tech company, a trend that continues to shape the digital landscape.