US, TikTok Reviewing Draft Mitigation Agreement, Report Says
The Biden administration and TikTok drafted a “preliminary” agreement to resolve national security concerns raised by ByteDance, the app’s Chinese owner, but face “hurdles” before the agreement can be finalized, The New York Times reported Sept. 26. Under the draft deal, which will need to be approved by the Committee on Foreign Investment in the U.S., TikTok would restructure its “data security and governance” but would not be required to divest itself from ByteDance, the report said. Multiple agencies are skeptical the agreement will sufficiently address the U.S.’s national security concerns, the report said, which “could force changes to the terms and drag out a final resolution for months.”
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A Treasury Department spokesperson said CFIUS "is committed to taking all necessary actions within its authority to safeguard U.S. national security." The White House didn't comment. President Joe Biden last year revoked Trump-era executive orders that sought to ban transactions with TikTok owner ByteDance and WeChat owner Tencent Holdings (see 2106100005 and 2008070024). TikTok in 2020 sued the Trump administration for banning U.S. transactions with the company, saying the administration’s decision was heavily politicized and that it was the subject of a non-transparent review by CFIUS (see 2008240031).