The White House stated on February 10 that it is reviewing the possible security risks of TikTok, a Chinese short video app, but also emphasized that the Biden administration has not taken new “proactive steps” regarding the plan to sell TikTok ( proactive step).
The Wall Street Journal earlier on the 10th quoted a source as saying that the Biden administration requested the sale of TikTok's U.S. business to U.S. investment groups including Oracle and Wal-Mart during the extensive review of Trump’s policies and measures. The painting was put on hold indefinitely.
White House spokesperson Shaqi said when asked about related issues at a regular press conference, "it is incorrect to think that the Biden administration has taken new proactive steps."
She said that TikTok involves two different procedures, one in court, and the other is the Committee on Foreign Investment in the United States (CFIUS). She said: "The procedures of the U.S. Overseas Investment Committee are very strict and are ongoing."
Shaqi said that the Biden administration is fully assessing the risks posed by Chinese apps, including TikTok, to US data and will respond in a "decisive and effective way." But she did not give a specific timetable.
Last year, President Trump issued two administrative orders against TikTok on the grounds of protecting US national security and US user data security. An executive order invoked the "International Emergency Economic Powers Act" to prohibit the US app store from providing TikTok downloads and updates. The order was challenged by the court and has been suspended. The U.S. government subsequently filed an appeal, and related litigation continues.
On the 10th, the US Department of Justice requested the Federal Circuit Court of Appeals to suspend the trial of this case for a period of 60 days. In a motion submitted to the court, the Ministry of Justice said that the Ministry of Commerce plans to conduct a comprehensive evaluation of the injunctions to determine whether the national security threats described in the executive order continue to provide justification for these injunctions. An oral court debate on the case was originally scheduled for Thursday.
Another executive order issued by Trump requires TikTok's Chinese parent company ByteDance to divest TikTok's US assets. A few days after the issuance of this administrative order, the Overseas Investment Committee formally requested ByteDance to divest related assets. TikTok filed a complaint with the court, asking the court to annul the order, and the lawsuit is still going on.
While ByteDance and TikTok are launching judicial challenges, they are also negotiating with the US government regarding the sale of TikTok's US business. ByteDance's proposal at the time included the establishment of a brand new commercial entity, held by existing American investors from Oracle, Wal-Mart, and ByteDance, and responsible for handling user information and content review of TikTok in the United States.
The Wall Street Journal quoted a source on the 10th as saying that consultations between Bytedance's representatives and US National Security Council officials are still continuing. These discussions are about data security and how to prevent the US user data collected by TikTok from being obtained by the Chinese government, but they Will does not make a decision soon.
Reuters quoted people familiar with the matter as saying that Oracle and Wal-Mart's plan to acquire TikTok may still face several months of review while the new Biden administration is conducting a comprehensive assessment of the Trump administration's China policy.
The Wall Street Journal quoted White House National Security Council spokesperson Emily Horne as saying, "We plan to develop a comprehensive plan to ensure the security of US data to address the various threats we face. These include Chinese apps and other software operating in the US Posed risk."
In November last year, the Trump administration extended the deadlines for ByteDance to divest its assets in the United States by 15 and 7 days respectively, but decided not to extend it in December, but indicated that the negotiations would continue.
TikTok, Wal-Mart, and Oracle have not commented on the latest developments.