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The Biden administration backs attempts by former President Donald Trump to ban the popular TikTok video app, asking a judge to postpone a legal dispute over the proposed ban as the government begins a broader review of threats to the national security posed by Chinese technology companies.
A court filing on Wednesday said the U.S. Department of Commerce was reviewing whether Trump’s claims about TikTok’s threat to national security justified attempts to ban it from smartphone app stores and deny it vital technical services.
In addition, the Biden administration “indefinitely” suspended a plan to buy the United States of TikTok, according to a report by the Wall Street Journal.. Last year, the Trump administration negotiated a deal that would see U.S. companies Oracle and Walmart take a significant stake in the China-owned app for national security reasons.
The unusual arrangement stems from a Trump executive order to ban TikTok in the United States unless he accepts a greater degree of American control.
White House press secretary Jen Psaki did not deny the Journal’s report, but said on Wednesday that the Biden administration had not taken a “new proactive step” in the process.
Psaki added that the Biden administration comprehensively assesses the risks to US data, including that involving TikTok. A review of TikTok by the Committee on Foreign Investments in the United States, which examines the implications of these investments for national security, is underway, Psaki said. She did not offer a timeline for this process.
Trump targeted TikTok over the summer with a series of executive orders that raised concerns about the U.S. data TikTok collects from its users. But courts temporarily blocked the White House ban attempt, and the presidential election quickly eclipsed the fight against TikTok.
While President Joe Biden has said TikTok is a concern, his administration has not said whether it will continue to try to ban TikTok or force a sale. Biden has so far taken a cautious approach inherit Chinese policies from Trump and did not promise to reduce or cancel tariffs and other combative measures.
The Biden administration appears to be creating a clearer set of criteria for assessing which Chinese technology platforms pose a legitimate security risk to Americans, said Samm Sacks, a China expert at Yale Law School.
“I don’t think they see TikTok itself as a high priority issue,” she said, calling it a hypothetical future threat. “This one-time ban on a rotating group of Chinese tech companies is unlikely to continue.”
In September, Trump gave his interim blessing to a proposal by Chinese TikTok owner ByteDance that would form a new U.S. arm of TikTok in partnership with Oracle and Walmart, which would make significant investments in the new company. The agreement was to hand over the management of US user data for the application to Oracle. CFIUS, however, has not completed the required review of the arrangement. The government deadline for TikTok to sell its operations in the United States has passed.
TikTok is now looking to the U.S. District of Columbia Circuit Court of Appeals to review Trump’s divestment order and the government’s national security review.
TikTok and Oracle did not return requests for comment on Wednesday. Walmart declined to comment on Wednesday and referred questions to the Biden administration.
The Treasury Department, which chairs the CFIUS agency reviewing the TikTok agreement, did not respond to a request for comment. Neither the Commerce Department, which sought to enforce Trump’s orders last year, nor the Justice Department, which handles court challenges.
The Chinese government’s position on the deal is unclear. In September, state media criticized the proposal as intimidation and extortion in the United States.
Trump raised concerns that the Chinese government could spy on TikTok users if the app remains under Chinese ownership. TikTok has denied that it is a security threat, but said it is still trying to work with the U.S. government to resolve its concerns.
TikTok said Oracle and Walmart could acquire up to a combined 20% stake in the new company ahead of an initial TikTok public offering, which Walmart said could take place next year. Oracle’s stake would be 12.5% and Walmart’s 7.5%.
Where Oracle stands to handle data management, Walmart said it will provide e-commerce, fulfillment, payments and other services for the new company. TikTok said in a November court filing that the new entity, owned by existing U.S. investors Oracle Walmart and ByteDance, would be responsible for moderating data and content for U.S. users of TikTok.
The aggressive tactics of the Trump administration were part of a larger effort to counter China’s influence. During his tenure, Trump waged a trade war with China, blocked mergers involving Chinese companies, and stifled activities from Chinese companies like Huawei, a maker of telephones and telecommunications equipment.
The Biden administration shares many of the Trump administration’s concerns about Chinese technology and business practices, but it will likely use “different tactics and tone to achieve these strategic goals,” said Martijn Rasser, senior researcher at the Center. for a. New American security.
“They take a holistic and strategic approach to these issues and don’t tackle these businesses on an ad hoc basis,” he said. “It’s part of a larger reassessment.”
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