First phone call between the new president Joe Biden and Xi Jinping: the measures on Asian tech companies are also being examined. It is difficult to review the decisions, but in the meantime the US administration takes time on the operation of selling the Chinese app to Oracle and Walmart
Relations between the US and China will be reviewed from every point of view, from human rights to technology. And the result could confirm, narrow or even cancel Trump’s hard punch on some issues.
This will be the work to be done by the Pentagon task force announced by the new American president Joe Biden, protagonist yesterday of a historic first call with the Chinese leader Xi Jinping. At the center of the conversation, trade issues and the US president’s concerns about the situation in Hong Kong. According to a statement released by the White House, Biden raised concerns about Beijing’s “coercive and unjust economic practices”.
Biden also insisted with Xi on China’s actions against Taiwan and human rights violations against Uighurs and ethnic minorities in western Xinjiang province. The Chinese state broadcaster says Xi opposed these concerns and warned: “The United States should respect China’s fundamental interests.”
At the center of attention, in the plan to revise the US national security strategy in China , the problem of Chinese apps such as TikTok , which former President Donald Trump had decided to ban in the United States , will obviously also end . Biden has already moved on this issue, effectively putting the issue on standby with a request to a judge to postpone the legal dispute over the ban. This is to give the White House time to initiate a broader review of national security threats posed by Chinese tech companies.
Biden’s decision to review relations with China in detail therefore indefinitely pauses Oracle and Walmart’s plans to buy TikTok’s US assets. Following the news, reported by the Wall Street Journal, Oracle stock had a slightly positive trend in pre-market trading Wednesday, while Walmart’s was slightly negative.
Trump’s ban on the Chinese app
Trump had pushed TikTok to find an American buyer, threatening to ban the popular video app due to concerns that its parent company, Byte Dance, could hand over US user data to the Chinese government. TikTok had denied the hypothesis, even if the data had been requested by Chinese officials. Furthermore, the app’s servers are not based in China and so far many concerns still seem hypothetical.
TikTok eventually reached a partnership agreement with Oracle and Walmart, according to which US companies will purchase a stake in the app, providing secure technology. Under the terms of the agreement, ByteDancewould be destined to remain the owner of 80% of the business: despite this, Trump said in September that he approved the deal in principle.
A case ended up in court (to the detriment of the former president)
The deal, however, stalled for the first time when TikTok fought in court against the Trump administration over the attempted ban. Federal judges repeatedly dismissed the former president’s restrictions, until a December ruling said the Commerce Department under Trump “probably overstepped” its legal authority.
Yesterday, at a press conference in the White House, Press Secretary Jen Psaki told reporters that the new administration has not taken any new action on the TikTok deal. “It is not correct to say that there is a new step on the part of the Biden White House,” Psaki said. “There is a rigorous process by the US Foreign Investment Commission (CFIUS) underway.” He then added that the administration continues to keep a close eye on the issue of risks to US data stemming from apps, including TikTok.
According to some sources, TikTok continued talks with CFIUS, but the final deal would likely be different from the one originally concluded. No comments have been made on the matter.
