GOP China hawks are expected to reluctantly support President Trump’s efforts to save lots of TikTok from going dark within the US – despite lingering concerns about US security, On The Money has learned.
Key Republicans were briefed earlier this week in regards to the president’s latest US-controlled company that can house the wildly popular and controversial short-video app – including the way it operates the all-important advice algorithm.
On the closed-door briefing, administration officials told US lawmakers and staffers how a brand new ownership structure will remove the algorithm’s Chinese spyware and make the brand new TikTok secure for US users – a needed measure to comport with a law that claims the app should be banned if there’s any trace of Chinese control.
As first reported by The Post, the brand new TikTok algorithm shall be a version of the Chinese algorithm owned by Beijing-based ByteDance that shall be reformatted by Oracle, the software giant co-founded by billionaire Trump backer Larry Ellison.
Nevertheless, Congressional staffers remain skeptical whether the brand new algorithm might be rewritten to be completely protected against Chinese espionage given a few of the wonky details of the deal disclosed throughout the briefing, in line with individuals with direct knowledge of the matter. The algo will still be China’s and shall be leased to the brand new US company.
“From a national security standpoint this isn’t so great,” said an individual with direct knowledge of the briefing. “The algo shall be leased by the Chinese to the US TikTok for 10 years and Oracle won’t have complete say when it comes to how one can change it.”
A press official for Oracle had no immediate comment as did a Trump spokesman.
Along with concerns over the algorithm, some lawmakers fear the Chinese shall be the largest winner from the deal, gleaning around 50% of the brand new company’s profits given the 20% ownership stake ByteDance will keep in the brand new company, and the associated fee of the licensing agreement for the algorithm from ByteDance.
Actually, the associated fee of the algorithm, which is being paid from TikTok revenues, has reduced the valuation of the brand new company from the expected $40 billion to around $16 billion.
Oracle plans to temporary Congress in the approaching weeks and hearings could also be held within the months ahead. US lawmakers are reluctant to buck President Trump, who is alleged to think about the deal key to his broader negotiations with China over trade.
“I don’t think this can be a hill anyone within the Republican Party goes to die on given how much the president wants this deal,” said an individual near the GOP China hawk wing.
Sources note that the Congressional ban law’s interpretation of “control” – with respect to each ownership and the algorithm – rests largely with the president. Trump and Vice President JD Vance, who played a key role in hammering out the brand new TikTok structure, consider the US security safeguards are sufficient to comport with the law.
Trump was a TikTok hater during his first term, and attempted to ban the app within the US believing it was utilized by the CCP for spycraft. But he’s since had a change of heart, attributing his victory within the 2024 election partly to his campaign’s flooding TikTok with pro-MAGA content.
In April 2024, former President Biden signed bi-partisan laws banning TikTok from US app stores if it didn’t relinquish Chinese control. Trump has issued executive orders stopping the ban from happening until a brand new US TikTok deal could possibly be cobbled together. That deal was finalized Thursday.
GOP China hawks are expected to reluctantly support President Trump’s efforts to save lots of TikTok from going dark within the US – despite lingering concerns about US security, On The Money has learned.
Key Republicans were briefed earlier this week in regards to the president’s latest US-controlled company that can house the wildly popular and controversial short-video app – including the way it operates the all-important advice algorithm.
On the closed-door briefing, administration officials told US lawmakers and staffers how a brand new ownership structure will remove the algorithm’s Chinese spyware and make the brand new TikTok secure for US users – a needed measure to comport with a law that claims the app should be banned if there’s any trace of Chinese control.
As first reported by The Post, the brand new TikTok algorithm shall be a version of the Chinese algorithm owned by Beijing-based ByteDance that shall be reformatted by Oracle, the software giant co-founded by billionaire Trump backer Larry Ellison.
Nevertheless, Congressional staffers remain skeptical whether the brand new algorithm might be rewritten to be completely protected against Chinese espionage given a few of the wonky details of the deal disclosed throughout the briefing, in line with individuals with direct knowledge of the matter. The algo will still be China’s and shall be leased to the brand new US company.
“From a national security standpoint this isn’t so great,” said an individual with direct knowledge of the briefing. “The algo shall be leased by the Chinese to the US TikTok for 10 years and Oracle won’t have complete say when it comes to how one can change it.”
A press official for Oracle had no immediate comment as did a Trump spokesman.
Along with concerns over the algorithm, some lawmakers fear the Chinese shall be the largest winner from the deal, gleaning around 50% of the brand new company’s profits given the 20% ownership stake ByteDance will keep in the brand new company, and the associated fee of the licensing agreement for the algorithm from ByteDance.
Actually, the associated fee of the algorithm, which is being paid from TikTok revenues, has reduced the valuation of the brand new company from the expected $40 billion to around $16 billion.
Oracle plans to temporary Congress in the approaching weeks and hearings could also be held within the months ahead. US lawmakers are reluctant to buck President Trump, who is alleged to think about the deal key to his broader negotiations with China over trade.
“I don’t think this can be a hill anyone within the Republican Party goes to die on given how much the president wants this deal,” said an individual near the GOP China hawk wing.
Sources note that the Congressional ban law’s interpretation of “control” – with respect to each ownership and the algorithm – rests largely with the president. Trump and Vice President JD Vance, who played a key role in hammering out the brand new TikTok structure, consider the US security safeguards are sufficient to comport with the law.
Trump was a TikTok hater during his first term, and attempted to ban the app within the US believing it was utilized by the CCP for spycraft. But he’s since had a change of heart, attributing his victory within the 2024 election partly to his campaign’s flooding TikTok with pro-MAGA content.
In April 2024, former President Biden signed bi-partisan laws banning TikTok from US app stores if it didn’t relinquish Chinese control. Trump has issued executive orders stopping the ban from happening until a brand new US TikTok deal could possibly be cobbled together. That deal was finalized Thursday.
