Donald Trump’s administration has just offered TikTok extra time. The Chinese social network will now have until December 4, 2020 to finalize the terms of its agreement with Oracle and Walmart as part of the sale of its American operations, reports the Wall Street Journal.
TikTok saves time
Notice. In August last year, Donald Trump signed an executive order requiring TikTok to resell its American operations to a US company, under penalty of completely banning the area. ByteDance’s Chinese application then only had 90 days to find a buyer, the maximum on November 12, 2020.
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If TikTok actually managed to find a buyer within that time frame with Oracle as its tech partner and Walmart as its commercial partner, the situation quickly got complicated, particularly due to an arrangement with vague outlines in which the distribution of shares appeared to be an issue. In this regard, TikTok finally managed to get an additional 15 days on the fateful date to restructure its international assets and finalize the details of its agreement with the two American companies.
The Chinese social network received a new expansion from the US Foreign Investment Committee (CFIUS) today. Indeed, a US Treasury Department spokesman has announced that the committee has “granted ByteDance a one-week extension from November 27, 2020 to December 4, 2020 to allow time to review a revised and recently received proposal.” . For its part, the Chinese request declined to comment on the information.
The United States is easing the pressure
Obviously, the United States’ pressure on TikTok seems to have eased somewhat. While Donald Trump’s administration initially wanted to hit hard to block the spying motion on behalf of the Chinese government as quickly as possible, the various remedial measures and additional delays actually show that some easing is beginning to take place.
It is now clear that a final result in this case should still take a few weeks, if not several months. Especially since China, as we recall, has already announced that it will not approve this takeover, which it considers to be forced. It is clear that TikTok still has a long way to go.