讀後心得

U.S. President Trump recently announced the signing of an executive order to extend TikTok's operations in the United States for 75 days in order to allow time to facilitate a deal. According to sources, the deal proposal is nearing finalization, with plans to establish a new company controlled by American investors, while ByteDance will hold less than 20% of the shares. Although both parties have reached certain consensus, ByteDance stated that there are still differences, and the Chinese government has not yet approved the transaction. Trump expressed hopes that both sides could negotiate on trade and tariff issues, and pointed out that TikTok's security concerns remain a major worry. Public sentiment in the United States regarding TikTok is increasingly divided, with many expressing concerns about user data security.

On Friday (April 4), the President of the United States announced that he would sign an executive order allowing TikTok to continue operating in the U.S. for 75 days to give the government more time to facilitate a deal. Sources indicated that the structure of the deal was essentially finalized on Wednesday, planning to spin off TikTok's operating business into a new company headquartered in the U.S., to be controlled and operated by American investors, while ByteDance, the Chinese parent company, would retain less than 20% of the shares. This deal has received approval from existing investors, new investors, and the U.S. government, but ByteDance stated on Saturday that there are still disagreements regarding the deal. The company indicated that negotiations with the U.S. government are ongoing, and no agreement has been reached, with both parties still having differences on several key issues. According to Chinese law, any agreement must undergo related review processes.

When asked about the status of the TikTok deal, the Chinese Embassy in Washington stated in a message that China consistently respects and protects the legitimate rights and interests of enterprises and opposes actions that violate the basic principles of a market economy. Sources revealed that ByteDance has communicated to the White House that China will not approve the deal unless negotiations are initiated on trade and tariff issues. The main obstacle to this deal is the approval of the Chinese government. The deal has undergone months of negotiations led by the U.S. Vice President in consultation with several potential investors and ByteDance, and the agreement plans to set a 120-day closing period to complete documentation and financing.

Trump stated on social media that the government has been working hard to save TikTok and has made significant progress, but more efforts are needed to ensure the signing of all necessary approvals. His signing of the executive order allows TikTok to continue operating for 75 days mainly because the obstacle to the deal lies in the approval of the Chinese government. Trump mentioned hopes for sincere cooperation with China and pointed out that China is not very satisfied with the reciprocal tariffs imposed by the U.S. Recently, he announced an increase in tariffs, facing retaliatory actions from China.

Trump has previously stated that to facilitate ByteDance's sale of the app with 170 million American users, he is willing to lower tariffs on China. Currently, his administration is in contact with four different groups regarding TikTok's potential deal, but he did not disclose the specific names of these groups. Some American investors include Oracle and Blackstone, while most of TikTok's data in the U.S. is hosted on Oracle's servers. Even if the deal is ultimately reached, concerns about TikTok's security issues remain.

This extension by Trump marks his second postponement of enforcing last year’s law, which originally required TikTok to cease operations until ByteDance completed the spinoff. Senators believe that the Chinese government could use TikTok for espionage activities, which is why its operation must be halted. After starting his second presidential term earlier this month, Trump chose not to enforce the law, and the Justice Department also informed Apple and Google that the law would not be enforced, leading them to resume downloads of the app.

TikTok's global headquarters is located in Singapore and Los Angeles, and the company has stated that it always prioritizes user safety. The Chinese Foreign Ministry emphasized that the Chinese government has never asked companies to collect or provide their data held abroad. During Trump's first term, he attempted to ban TikTok on national security grounds, but his stance later changed. Reports suggest that even if an agreement is signed, if TikTok's algorithm is still controlled by ByteDance, it poses a threat to U.S. interests.

The decision regarding this delay has sparked some skepticism, as legal experts indicate that part of the reason is that plaintiffs find it difficult to demonstrate actual harm caused by the suspension of the law. Cybersecurity experts also mentioned that if the control over data and algorithms does not change, then the deal does not materially change any risks. The law allows for a one-time 90-day exemption if an agreement is reached and Congress is notified. Some scholars pointed out that Trump's actions do not comply with relevant legal requirements. As for the American public's view of TikTok, it has become more divided compared to two years ago, with fewer people supporting a ban, yet security risks remain a major consideration.

TikTok content creators are feeling fatigued by the deal and hope to get clearer results soon so they can focus on other matters.