WASHINGTON: On Wednesday, the U.S. Treasury said it had extended by seven days the Nov 27 deadline given to the Chinese owner of TikTok to sell the American business of the influential social media site.
‘ByteDance has been granted a one-week extension from Nov 27, 2020 to Dec 4, 2020 by the Committee on Foreign Investment in the US (CFIUS). It allows time to review a revised submission recently received by the Committee,’ said a Treasury spokesperson.
The administration of President Donald Trump has raised national security concerns about the app. He alleg it could be used for Chinese spying and threatening to ban it.
The ban has been challenged in courts, including a lawsuit in Washington and a separate filing in a Pennsylvania court by the app’s “creators”. It blocked the ban on Oct 30, although that injunction is being appealed by the government.
Trump, who lost his bid for re-election this month. He has alleged that TikTok can be used to collect data on Americans for Chinese spying. A suggestion refuted by the firm, which has some 100 million US users.
The White House has said that in order to avoid a ban, TikTok must become a US firm owned by American investors.
But any proposal will likely need Beijing’s approval, which has baulked at giving up its social media star’s influence.
In addition, in August, China’s Ministry of Commerce published new rules that added “civilian use to a list of export-restricted forms of technology, that could make it more difficult for ByteDance to sell TikTok, which features clips of everything from dance routines to politics.
Earlier this year a deal appeared to take shape. And it would allow Silicon Valley giant Oracle to be the data partner for a newly merged TikTok Global, with Walmart joining as a business partner.
While Trump has indicated his approval of the proposal, it has not been completed and the outlook remains uncertain.
Moreover, the developments come amid heightened tensions over trade and national security between Washington and Beijing. The US administration also prohibiting Chinese tech giant Huawei from purchasing US technology and wireless network deals.
More Information About:
- Trump aide expects ban on WeChat, TikTok to ‘ultimately succeed’
- TikTok, WeChat downloads will be barred from US