In an attempt to block possible channels of China’s influence on the American public through the TikTok social network, US authorities initially relied on the infrastructure of the American company Oracle. Oracle is also involved in specialized initiatives and plays a role at the new stage of negotiations, which by early April could result in a deal involving both Oracle and TikTok’s parent company, ByteDance.
According to Politico, citing its own sources, US President Donald Trump has delegated authority over these negotiations to Vice President JD Vance and National Security Advisor Mike Waltz. Some senators have expressed interest in participating in the process, but the decision remains with these political figures. Among the most radical American parliamentarians, concern is growing about the superficial nature of potential changes to TikTok’s operations in the US. These lawmakers are particularly wary of the possibility that key technologies underpinning the social network might remain under Chinese control. US lawmakers are set to hold consultations with Oracle representatives on the matter this week. We’ll keep you updated as the situation develops.
Concerns Over Control and Data Security
The deal under discussion would involve Oracle managing American TikTok user data while limiting access from the Chinese side. However, some lawmakers argue that if ByteDance retains control over TikTok’s key algorithms, Oracle’s obligations under the deal may be seen as insufficient. Despite these concerns, an independent study by HaystackID in February found no suspicious activity within TikTok’s US infrastructure. Furthermore, there have been no reported cases of personal data leaks involving American TikTok users, notes NIX Solutions.
The potential agreement, expected to be finalized by early next month, has been informally labeled “Project Texas 2.0.” It represents the second attempt by US authorities to restructure TikTok to ensure American user data is stored and processed solely on Oracle’s US servers. The current extension of the TikTok ban in the US is set to expire on April 5. President Trump has expressed hope that the deal will be concluded before then but is prepared to extend the deadline if necessary.
China’s Position on the TikTok Deal
Chinese authorities have sent mixed signals regarding their stance on the potential deal. On one hand, they have indicated that ByteDance would need approval from Chinese regulators before transferring its US assets and key technologies to American investors. On the other hand, they have stated that ByteDance will independently determine the future of its US operations in accordance with market rules and Chinese law. Additionally, Chinese officials have condemned what they describe as “hegemonic actions” by the US in attempting to seize control of TikTok.
As discussions continue, we’ll keep you updated on any significant developments related to the TikTok deal and its implications.