America is concerned that TikTok users could have their personal information obtained by the Chinese government, posing a threat to national security.
Beijing last month introduced export restrictions on artificial intelligence technology, seemingly including the type that TikTok uses to choose which videos to spool up to its users.
The U.S. WeChat Users Alliance filed a lawsuit to halt Trump's August 6 order that will prohibit residents from doing transactions with Tencent Holdings Ltd.'s WeChat as well as with ByteDance Ltd.'s TikTok starting this month.
ByteDance is speaking with the U.S. government about possible solutions that may allow it to retain some ownership of the U.S. operations of TikTok, while satisfying regulators in both China and the U.S. Those possibilities include handing over operational control of TikTok data to a U.S. tech company, while potentially still holding on to some ownership of assets, a person familiar with the process told CNBC. In fact, ByteDance says that the only servers used by TikTok for its US subscribers are in the USA and Singapore.
ByteDance, the Chinese company that owns TikTok, is in talks to avoid being forced by President Donald Trump to sell the wildly popular social media app. It'll probably restructure the app's United States operations to appease the American government.
The Wall Street Journal previously reported Wednesday that ByteDance was working with the USA government on ways to avoid a full sale. However, those discussions have intensified in recent times after the Chinese government got involved in the TikTok-US saga. The deal would have to be completed by November 12.
The new regulations could make it more hard for ByteDance to sell the wildly popular video app, which features clips of everything from dance routines and hair-dye tutorials to jokes about daily life and politics.
TikTok's Chinese owners ByteDance Ltd has declared a rare half-month salary bonus for its employees in a bid to calm nerves of a 60,000-plus anxious workforce across the globe. So far, the likes of Microsoft and Oracle have shown interest in wanting to acquire these operations.