Despite ongoing worries about safety in the US, some GOP figures known for their hard stance on China may be prepared to back President Trump’s initiative to save TikTok in the country, according to various sources.
This week, prominent Republicans were informed about the president’s plan for a new US management team to oversee the widely used and debated social media app.
During a briefing, officials explained to lawmakers how the new ownership would eliminate the potential for Chinese spyware and enhance security for US users on TikTok.
As previously reported, the restructured TikTok algorithm will still have ties to the Chinese version owned by a Beijing firm but will be reformatted by Oracle, a tech giant co-founded by Larry Ellison, a notable supporter of Trump.
However, congressional staff appear skeptical about whether the new algorithm can be completely safeguarded against Chinese surveillance, given some of the unpredictable details revealed during the meeting, according to insiders. Notably, part of the algorithm is still based in China and will be leased to a new US entity.
“From a national security perspective, this isn’t that big,” remarked someone familiar with the briefing. “Argo was leased to the US TikTok for a decade, and Oracle doesn’t have full control over how to restructure it.”
Oracle’s representatives, like those from Trump’s office, have not provided immediate comments.
Some lawmakers are concerned that, under the terms of this deal, the Chinese may actually benefit the most, retaining a 20% stake and potentially taking 50% of the profits from the new entity, all while expenses for the licensing agreement remain fixed.
In fact, the costs associated with the algorithm are expected to lower the valuation of the new company significantly, from a projected $40 billion down to about $16 billion.
Oracle intends to clarify details to Congress in the upcoming weeks, with hearings likely on the horizon. US lawmakers are cautious, especially regarding Trump’s broader negotiation strategy with China related to trade.
“I think this might not go far given how much some Republicans seem to desire this deal,” noted a source close to the GOP’s China-focused members.
Observers mention that the notion of “control” under the Congressional Anti-Congress Act primarily hinges on presidential interpretation, particularly concerning ownership and algorithm management. Trump and Vice President JD Vance, who have been instrumental in establishing the new TikTok framework, are confident that US security measures are adequate according to the law.
Interestingly, Trump had been a vocal opponent of TikTok in his first term, even seeking to prohibit the app in the US. However, he hints that his success in the upcoming 2024 election may be tied to exploiting TikTok for campaign content.
In April 2024, former President Biden enacted a bipartisan law that could ban TikTok from US app stores if it doesn’t sever ties with China. Trump has now signed an executive order to postpone this ban until the new agreements for a US TikTok are finalized. That deal was completed on Thursday.
