Trump Changes Stance in One Day: "Not Satisfied with TikTok Negotiations"

China Expresses Dissatisfaction Over ByteDance Maintaining Majority Stake

▲Donald Trump, President of the United States [Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] U.S. President Donald Trump expressed dissatisfaction with the TikTok sale negotiation, a Chinese video-sharing social networking service, saying he did not like the agreement.

According to Bloomberg on the 16th (local time), President Trump said at a press conference that he "does not like the agreement" regarding ByteDance maintaining a majority stake in TikTok Global's business division, adding, "I am not ready to approve anything yet, and I will look into the details of the agreement further." He added, "I will be briefed tomorrow morning, so I will let you know then."

This marks a 180-degree change in attitude from the previous day when President Trump optimistically said, "The deal is very close."

Earlier, President Trump demanded the sale of TikTok, citing national security concerns, claiming that information of TikTok's U.S. users could be handed over to the Chinese Communist Party by its parent company, China's ByteDance.

The White House set a deadline for the TikTok sale on the 20th of this month and strongly pressured that if not met, TikTok use would be banned in the U.S.

In response, ByteDance appeared to be reaching an agreement to maintain the largest stake while allowing the U.S. company Oracle to hold a minority stake and participate in operations as a technical cooperation partner managing user information. However, with President Trump changing his stance in just one day, the likelihood of the negotiation's success became uncertain.

The Committee on Foreign Investment in the United States (CFIUS), composed of the Treasury Department, State Department, Commerce Department, and other related agencies, has been reviewing the issue but has not yet issued a recommendation.

After CFIUS reviews and makes a recommendation, President Trump will examine it and give final approval.

Bloomberg reported that senior officials in the Trump administration perceive the current agreement as insufficient to alleviate U.S. national security concerns.

According to sources familiar with the matter, senior officials including Secretary of State Mike Pompeo are concerned that even if the deal is completed, ByteDance could still have access to data of the 100 million TikTok users in the U.S.

Additionally, the absence of the transaction revenue demanded by President Trump in the agreement is cited as another reason for his dissatisfaction.

At the press conference, President Trump expressed frustration, saying, "I heard there is no legal way for the U.S. government to receive revenue from the TikTok deal," and asked, "What on earth is going on?"

Previously, President Trump stated that if TikTok's U.S. business rights were sold, a large portion of the sale proceeds should go to the U.S. government.