TikTok’s agreement to sell off its US business operations to Walmart and Oracle has been indefinitely suspended as Joe Biden’s administration takes stock of the national security risks posed by China tech companies, reports Wall Street Journal. TikTok has been in conversation with Walmart and Oracle since September to confirm a deal that would transfer TikTok’s US assets into a new entity to prevent its complete ban on use in the country.
Previously, in August 2020, former president Donald Trump had also flagged national security concerns over TikTok’s operations in the country stating personal data of US citizens is at stake as it could be controlled in the hands of the China’s government.
“We plan to develop a comprehensive approach to securing US data that addresses the full range of threats we face,” Emily Horne, National Security Council spokeswoman told Wall Street Journal.
“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,” added Horne, reports WSJ.
ByteDance, TikTok’s parent company, finds itself in a legal battle with the US government, with many federal courts barring the Commerce Department’s attempt to close TikTok’s operations in the United States.
TikTok has more than 100 million users in the United States, which displays a simple user interface, background music options, and many special effects to assist users make short-form entertaining videos.