TikTok’s sale to Oracle ‘shelved’ as Biden reviews China strategy

TikTok had been in the process of selling its US assets to Oracle and Walmart

TikTok’s enforced sale of its US division has been called off as  President Biden’s team conducts a review of efforts by the Trump administration to crack down on Chinese tech firms.

The TikTok deal had been pushed by Donald Trump after the White House threatened to ban the Chinese video sharing app over claims it posed a security threat.

Under pressure from the Trump administration last year, TikTok, which is owned by Chinese tech giant Bytedance, announced last September it would sell its US division to a consortium including Walmart, the US retailer, and software firm Oracle. 

On Wednesday, the Wall Street Journal reported that deal had been “shelved indefinitely” after being hit by delays due to court challenges and the US Presidential election.

Emily Horne, a spokesperson for the US National Security Council, said: “We plan to develop a comprehensive approach to securing US data that addresses the full range of threats we face. 

“This includes the risk posed by Chinese apps and other software that operate in the US. In the coming months, we expect to review specific cases in light of a comprehensive understanding of the risks we face.”

TikTok did not immediately respond to a request for comment.

Biden’s team is expected to take a more lenient approach to TikTok than the previous administration, highlighting data security as the key issue, rather pushing for a ban on the app.

TikTok no longer faces the threat of an imminent shut down by the US government. Trump had launched a campaign against Chinese tech companies, including telecoms giant Huawei and later apps such as Alibaba’s Alipay and Tencent’s WeChat.

Last summer, Peter Harrell, who now sits on Biden’s National Security Council, said he strongly agrees that "the best way for US to address TikTok is for TikTok to become a leader in transparency and data privacy, rather than banning it.”