The U.S. software giant has given reassurances it can protect TikTok user data from foreign influence.
'Prohibiting the identified transactions is necessary to protect the national security of the United States, and the department expects to soon seek relief from this order, ' the Commerce Department said.
Both WeChat and China have strongly denied the claim. "[It will have] no access to the company, no decision-making authority, [no] ability to peer into what they're doing".
A US judge early Sunday blocked the Trump administration from requiring Apple Inc and Alphabet Inc's Google to remove Chinese-owned messaging app WeChat for downloads by late Sunday.
WeChat was set up in 2011.
Commerce Department said Friday it would bar WeChat from USA app stores and keep it from accessing essential internet services in the country beginning Sunday at 11:59 p.m.
The administration threatened fines of up to $1 million and up to 20 years in prison for violations of the order. But Beeler argued that an outright ban of the platform was unjustified.
Treasury Secretary Steven Mnuchin remains confident that Trump will sign off on the transaction, but US national security officials continue to raise concerns that the data of more than 100 million American users would remain in the hands of a Chinese firm, according to four people familiar with the matter. The deal still needs to be signed off by the Chinese government. Reports over the weekend said that because Bytedance is 40 per cent owned by U.S. investors, the White House would consider that deal's structure to satisfy the requirement that control of TikTok is handed over, reports over the weekend indicated. However, Oracle will be allowed to inspect the source code to ensure there's nothing shady behind the scenes.
"If we find that they don't have total control, then we're not going to approve the deal", Trump said of Oracle and WalMart.
The trio hammered out a deal in principle to "strengthen TikTok's business in the U.S., ensure that 100 million Americans can still continue using the highly popular video and content app TikTok, and meet regulatory requirements by the United States administration", ByteDance replied to China Daily in a written statement on Sunday. "Everything is going to be moved into a cloud done by Oracle. and it's going to be controlled - totally controlled by Oracle".
That includes several hundred thousand Chinese students in the United States, who use it for daily online conversations.
The Monday statement was meant to clarify "rumors" about the deal, ByteDance said. In an accompanying video, the Interim Head of TikTok said: "We are here for you, and we are here for the long run". The company will be headquartered in the USA and will create some 25,000 jobs.