Trump's TikTok Deal: What Happened?

The saga of Trump and TikTok is a winding tale of national security concerns, potential bans, and ultimately, a deal that never fully materialized. Let’s break down what actually happened.

The Initial Concerns

Under the Trump administration, TikTok, owned by the Chinese company ByteDance, came under intense scrutiny. The primary concern revolved around data security. The fear was that the Chinese government could potentially access user data collected by TikTok, posing a national security risk. These concerns were amplified by China's national security laws, which compel companies to share data with the government when requested.

Executive Orders and Proposed Bans

In the summer of 2020, President Trump issued a series of executive orders aimed at banning TikTok in the United States. These orders cited national security concerns and sought to prevent U.S. companies from doing business with ByteDance. The legal basis for these orders was the International Emergency Economic Powers Act (IEEPA).

• August 6, 2020: Executive orders were issued to ban TikTok and WeChat, giving a 45-day deadline.
• Legal Challenges: TikTok challenged the ban in U.S. courts, arguing that the ban violated free speech and due process rights.

The Proposed Deal

To avoid a ban, the Trump administration pushed for a deal that would involve an American company taking over the operations of TikTok in the United States. Several companies, including Oracle and Walmart, entered negotiations with ByteDance.

The proposed deal structure involved:

• Oracle becoming a "trusted technology provider," responsible for auditing TikTok's algorithms and ensuring data security.
• Walmart potentially playing a role in e-commerce and other services integrated within TikTok.
• Creation of TikTok Global: A new U.S.-based entity that would oversee TikTok's operations in the United States.

Why the Deal Never Fully Materialized

Despite the negotiations and the framework of a deal, the agreement never received final approval. There were several factors at play:

1. Changing Administration: As Trump's term came to an end and the Biden administration took over, the urgency behind the deal dissipated.
2. Regulatory Hurdles: The deal faced scrutiny from both the U.S. and Chinese governments, leading to regulatory delays and uncertainties.
3. Evolving Concerns: The Biden administration took a more measured approach, reviewing the national security concerns related to TikTok and other Chinese tech companies more broadly.

Where Are We Now?

As of now, the Biden administration has not enforced the Trump-era executive orders. Instead, they have initiated a broader review of Chinese technology and its potential risks. TikTok continues to operate in the United States, but under ongoing scrutiny.

The situation remains fluid, with potential for future regulations or restrictions depending on the outcomes of the current reviews and negotiations.

In conclusion, the Trump TikTok deal was a complex attempt to address national security concerns. While a deal was proposed, it ultimately fell apart due to a combination of political transitions, regulatory hurdles, and evolving priorities. The future of TikTok in the U.S. remains uncertain, highlighting the ongoing challenges of balancing technological innovation with national security.