China’s ByteDance-owned TikTok on Saturday announced that it has proposed an agreement with Oracle as its US technology provider and Walmart as its commercial partner, after the United States administration ordered its ban from September 20, President Donald Trump touted the deal as “fantastic.”

“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok’s future in the US,” a spokesperson for TikTok told AFP. She said Oracle will become the “trusted technology provider, responsible for hosting all US user data and securing associated computer systems to ensure US national security requirements are fully satisfied.” 

On the announcement by TikTok, the US President, who earlier praised the deal as fantastic, said “I have given the deal my blessing.” He added, “If they get it done, that’s great, if they don’t, that’s OK too.”

TikTok said the company is also working with Walmart ‘on a commercial partnership’ as well. Talking about the deal, the spokesperson said that companies will ‘maintain and expand’ its global headquarters in the US that will create around 25,000 new jobs. 

The announcement of TikTok’s deal with Oracle and Walmart comes just two days after the US administration ordered a ban on the app, along with Tencent-owned WeChat, from September 20, citing the two apps as a threat to national security. 

Trump has claimed that TikTok collects user data and sends them to Beijing, without any proof for his allegations and in August he gave a deadline to the short-video sharing app and WeChat of September 20 to finalise a deal with a US company and leave Chinese companies in America. Following TikTok’s announcement, the US delayed the ban on downloading the app until September 27.

The US President, after TikTok’s deal announcement, said the “security will be 100%” and that the companies will use separate cloud servers. He added that the deal will lead to the creation of a new company, with headquarters in Texas that will have nothing to do with China. However, it would still be called TikTik, he said.