US President Donald Trump has agreed to give popular Chinese app TikTok’s owner ByteDance 45 days to negotiate a deal to sell the popular short video application o US giant Microsoft Corp.
As reported by TOI (1), US officials have statted that ByteDance poses a national risk because of the personal data it handles, which is why Trump on Friday announced that he was planning to ban TikTok in the US after dismissing the idea of a sale to Microsoft.
However, after discussing the situation with Microsoft CEO Satya Nadella, the Washington-based company Redwood said that it would continue with its negotiations to acquire TikTok from ByteDance, and aims at reaching a deal by 15th September.
Deteriorating ties between the US & China
Trump’s decision to ban TikTok comes after data-privacy concerns raised by individuals, claiming that the China-based firms are under a legal obligation to provide its government with the user’s data when asked for.
Microsoft stated that a full security review of the app would be conducted.
Earlier, the US president was adamant about banning the popular short video format app in the US after India banned it. It was, however, not immediately apparent as to what changed his mind.
TikTok has one of the largest user-base in the US, with over 80 million users, with teens and young adults forming a huge chunk.
Microsoft stated that it was looking to buy the TikTok services in the US, Canada, Australia, and New Zealand, and would be operating the app in these markets if the deal is done.
Microsoft further ensured that “all private data of TikTok’s American users” would be transferred to and remain in the US.
Relations between China and the US have already been deteriorating over trade, Hong Kong’s autonomy, cybersecurity, and the spread of COVID-19, TikTok has emerged as a flashpoint between the world’s largest economies.