TikTok strikes venture deal to avert US ban threat
US officials, including Trump during his first term, have warned that China could use TikTok to collect data on Americans or exert influence through its algorithm.Trump has repeatedly delayed enforcement of the law through executive orders, most recently extending the deadline until January.The agreement largely confirms a White House announcement made in September, which said a deal had been reached that would meet the requirements of the 2024 law."Upon the closing, the US joint venture will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance," Chew said in the memo.He added that TikTok Global’s US entities would oversee global product interoperability and certain commercial activities, including e-commerce, advertising and marketing.The memo did not clarify whether the global unit would continue to be owned by ByteDance.The document marks the first indication that TikTok has formally agreed to the arrangement announced by the Trump administration, which would require approval from the Chinese government to proceed.
