A New Lease of Life for TikTok
A recent executive order has breathed new life into the popular app, TikTok, which was on the brink of being banned in the United States. The order not only saves the app but also ensures the protection of national security.
The Divestment Plan
A proposed framework agreement has been outlined which will see TikTok's U.S. operations run by a new joint-venture company based in the United States. This move has been termed a "qualified divestiture". The U.S-based venture will be primarily owned by American investors, managed by a board of directors possessing national security and cybersecurity credentials, and will follow strict rules to safeguard American citizens' data and the country's national security.
The stock ownership by the parent company will be less than 20% as per the law, and they will have the authority to select only one director for the seven-seat board. They will have no say in the company's security committee.
An established technology company will be responsible for TikTok's security, independently overseeing and ensuring the safety of all operations on American soil.
Addressing National Security Concerns
The divestment plan aims to resolve national security concerns and comply with the Protecting Americans from Foreign Adversary Controlled Applications Act (Act) by stripping control of TikTok in the United States from foreign powers.
The operation of the algorithm, code, and content moderation decisions will be under the control of the new joint venture. The divestment plan restricts the storage of sensitive U.S. user data in a way that could allow it to fall under foreign control. All U.S. user data will be stored in a secure, dedicated cloud environment in the United States, managed by the appointed technology company.
The plan also includes rigorous monitoring of software updates, the algorithm, and data flows. It demands that all recommendation models using U.S. user data be retrained and overseen by trusted security partners. This measure ensures that U.S. content is safeguarded from inappropriate manipulation.
The Act will not be enforced for 120 days to allow the completion of the divestiture.
Benefits for Americans
This deal not only saves TikTok but also secures the interests of the 170 million American users. They can continue to enjoy the global TikTok experience and view international content, confident that their data is secure.
American content creators depend on TikTok to build their audience, showcase their talents, and generate income in the digital economy. Similarly, American businesses, both big and small, use TikTok's extensive reach for advertising, customer engagement, and driving economic growth.
The deal has effectively found a way to keep TikTok functional while addressing national security issues and introducing new American investment and control.
The continuation of TikTok's business is projected to generate $178 billion in economic activity in the U.S. over the next four years, supporting thousands of U.S. jobs and businesses.
The Art of Strategic Deals
The deal reflects the ability to negotiate agreements that prioritize America and its citizens. A history of national security and foreign policy successes backs this, including the enactment of the Abraham Accords, replacing NAFTA with USMCA, and brokering the Phase One China Trade Deal.
Since taking office, numerous detained Americans abroad have been secured and released. Bold trade strategies have resulted in historic agreements with major trading partners, leading to unprecedented investments in the United States and expanded market access for American goods.
Through strategic pressure, foreign nations have exited debt-trap diplomacy schemes used by other countries to gain influence over developing nations.
As quoted, "And if we can save it, I think that would be a very good thing. And I think it would be economically good for America."
