Jan. 21—President Donald Trump is working on the terms of deal, with Chinese President Xi Jinping’s blessing, that will save the popular social media video streaming TikTok app from a U.S. ban imposed by Congress last year, unless the Chinese-state backed company that owns it divests its interest in its U.S. component.
Sources report that Trump does not believe that the app, which is especially popular among younger users, represents any threat to U.S. national security interests by giving the Chinese access to confidential information about its 170 million American users, as the sponsors of the legislation, including some Trump supporters like GOP Senator and Intelligence Committee Chairman Tom Cotton (R-Ark) believe. “What the heck?” said a source. “So, the Chinese will learn how many Americans seek herbal answers to ED [Erectile Dysfunction]. And that will give them a security advantage? You gotta be kidding me.”
Among the many executive orders Trump signed last night was one that extended the time for 75 days that TikTok now has to reach some kind of divestiture agreement from Jan. 19, the date the ban was to become effective. Sources close to Trump say that he is in the process of putting together a group of investors, who along with the U.S. government, will buy the U.S. component of the app. Those sources say that prior to the phone conversation between Trump and Xi Jan. 16, TikTok’s owners at ByteDance had said that they were unwilling to sell, and would rather shut the app down—which they did for about 12 hours on Jan. 19—what some have criticized as a “publicity stunt.” But Trump started saying to all who would listen, that he was not going to let TikTok go down. And then, suddenly, TikTok officials said they were now willing to discuss divestiture with Trump or his representatives.
The moves have prompted a sharp rebuke from official Chinese government sources, who say that Trump is trying to "steal" equity from its owner. These official sources say that it were better to keep government out of things and let corporations settle the issue on their own. But other sources say that such comments are "window dressing" to cover a deal that has the private backing of Xi, who is more concerned about avoiding a crisis in U.S/Chinese relations just as he and Trump are trying to steer those relations into a more peaceful and cooperative mode.
“There is a deal to be made here, and this President is going to make it,” said a source. “The government will take a share of the app, and hopefully that will quiet the ravings of Sinophobes like Sen. Cotton. While this may appear to be something relatively minor, it demonstrates Trump’s approach to relations between the world’s two largest economic powers. He seeks cooperation, accommodation and win-win type deals, and in that, he has a willing partner in President Xi. This was expressed in that telephone call between the two and it has the raving, lunatic Sinophobes descending into fits.”
Meanwhile, at the invitation of the President, TikTok CEO Shou Zi Chew got a prized seat in the Capitol Rotunda for Trump’s swearing-in—a privilege state governors and other key officials were not afforded. Seated next to Shou was Trump’s nominee for Director of National Intelligence, Tulsi Gabbard. Trump told reporters last night, as he signed the executive order: “TikTok is worthless if I don’t approve it.”
"More bluster, this time from the U.S. side," said the source. "Let's see what Trump works up. He said he wanted to be known as the master dealmaker."
While the app remains up for its U.S. users, it is still not available in app stores, where new users can download it. The stores are bot sure if Trump's exemption can legally be applied to them, said an industry source today, who said that what's taking place right now conforms to the law, which allows existing users access to the app.