Trump Supports TikTok Deal

President Donald Trump said he supported a deal that would see TikTok's famous video sharing app partner with Oracle to Walmart to form a U.S. business.

Trump targeted Chinese-owned TikTok for national security and data privacy issues at the latest flashpoint in rising tensions between Washington and Beijing, reports AP.

Trump's support for the agreement comes only a day after the Commerce Department revealed limitations that, if enforced, it would potentially make it almost impossible for TikTok's millions of younger fans to use the app.

Trump said that if concluded, the transaction would build a new corporation that is likely to be headquartered in Texas.

“I have given the deal my blessing,” he said. “If they get it done, that’s great. If they don’t, that’s OK too.”

Trump said the new company will be hiring at least 25,000 people and making a $5 billion contribution to a fund dedicated to education for Americans. “That’s their contribution that I’ve been asking for,” he said.

TikTok said that Oracle and Walmart could acquire up to a combined 20 per cent interest in the new company in the funding round to be held before the initial public offering, which Walmart said could happen in the coming year. Oracle 's share would be 12.5 per cent, and Walmart's share would be 7.5 per cent, the companies said in separate statements.

The deal will make Oracle responsible for hosting all U.S. user data from TikTok and protecting computer systems to ensure that U.S. national security requirements are met. Walmart said it will provide the new business with its e-commerce, execution, payments and other services.

“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US administration and settle questions around TikTok’s future in the US,” TikTok said in a statement.

Trump has been demanding that TikTok's US operations be sold to, or shut down, a US corporation. He was also targeting WeChat, another Chinese app.

The administration maintains that the user data obtained by the two apps could be shared with the Chinese government. On Saturday, Trump said the US-based TikTok "will have nothing to do with China." TikTok said it has 100 million US users.

On Friday, the U.S. Department of Commerce announced that it would ban TikTok from U.S. app stores at the end of Sunday. Further restrictions that would prohibit TikTok from accessing critical internet services in the country would have come into force on 12 November. Commerce said Saturday that it would delay TikTok 's withdrawal from US app stores until 11:59 p.m. on September 27.

Commerce imposes similar restrictions on WeChat, but all restrictions on that application are scheduled to come into force on Sunday night at 11:59 p.m.

WeChat has millions of US users who depend on the app to keep in touch and do business with people and companies in China and around the world.

The Trump administration's aggressive tactics are part of its new effort to fight China 's influence. Since taking office in 2017, Trump has waged a trade war with China, blocked mergers involving Chinese firms, and stifled the company of Chinese companies such as Huawei, a producer of phones and telecommunications equipment.

The US Treasury Department said Saturday that TikTok's deal still needs to close with Oracle and Walmart, and it also needs documentation and conditions to be approved by the Committee on Foreign Investment in the United States.