Framework Deal Reached But Not Finalized
The China-US TikTok deal has reached a crucial stage, with Treasury Secretary Scott Bessent confirming that a framework agreement is in place. However, finalization could still take 30 to 45 days, leaving uncertainty for millions of TikTok users in the United States. Despite progress, the agreement requires more time for both governments to settle critical details regarding ownership, security, and operational transparency.
National Security Concerns Driving the Deal
The push for the China-US TikTok deal stems from ongoing national security concerns. The Protecting Americans from Foreign Adversary Controlled Applications Act requires TikTok to separate from its Chinese parent company, ByteDance, or risk being banned in the US. This legislation reflects the government’s growing focus on protecting user data and ensuring foreign-controlled apps cannot pose risks to American interests.
Role Of Cloud Partners In The Agreement
An important element of the China-US TikTok deal involves ensuring that US user data is stored securely. Oracle will continue to act as TikTok’s cloud partner, providing American servers to host and manage sensitive data. This arrangement is central to addressing security worries and could help establish a framework for long-term compliance with US data protection standards.
What The Delay Means For TikTok Users
While the China-US TikTok deal is still pending, users are left in a state of uncertainty. The app remains available, but questions linger about its future depending on how the final terms are structured. If negotiations extend further, it could lead to new deadlines or additional extensions. For now, TikTok’s presence in the US hinges on whether both sides can turn the framework deal into a binding agreement.
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