Oracle Joins Consortium to Facilitate TikTok's Continued U.S. Operations Amid U.S.-China Negotiations

Technology company Oracle is among a consortium of firms working to enable TikTok to continue its operations in the United States, contingent upon the finalization of a framework agreement between the U.S. and China, according to sources familiar with the negotiations. The exact structure of the deal remains unclear, but it is expected to involve multiple companies. The level of involvement of Chinese firms, including TikTok's parent company ByteDance, and the control over TikTok's recommendation algorithm are still under discussion. Presidents Donald Trump and Xi Jinping are scheduled to discuss the matter on Friday. Attempts to reach Oracle executives and a White House spokesperson were unsuccessful, and a TikTok spokesperson declined to comment. Treasury Secretary Scott Bessent stated on Monday in Madrid, "The commercial terms have been agreed upon," following meetings with Chinese officials on various issues, including TikTok. Chinese Vice Minister of Commerce Li Chenggang added, "China will firmly safeguard the national interests, the legitimate rights and interests of Chinese enterprises, and carry out technology export approval in accordance with relevant laws and regulations." The Chinese Embassy in Washington had not responded to a request for comment at the time of publication. President Trump commented on the potential deal, saying, "We may let it die, or we may, I don't know, it depends. Up to China. It doesn't matter too much. I'd like to do it for the kids. They like it." In 2024, Congress passed a law requiring ByteDance to divest from TikTok or face a U.S. ban, which the Supreme Court upheld unanimously. However, President Trump has issued orders delaying its enforcement, with the latest extension set to expire this Wednesday. These orders have directed the Justice Department not to penalize tech companies like Apple and Google for allowing TikTok on their platforms. The 2024 law was enacted due to bipartisan concerns over national security risks posed by TikTok, including potential data access by the Chinese government and algorithm manipulation. TikTok has consistently denied any influence from Chinese officials. This issue traces back to President Trump's first term when he signed an executive order to ban TikTok in 2020 on national security grounds, a move later blocked by a judge. Four years later, President Trump expressed support for the app, crediting it for his improved performance among younger voters in the previous year's election.