The Chinese state-controlled media is signaling that China opposes the TikTok deal announced over the weekend and initially endorsed by President Donald Trump. The media is calling the deal "an American trap" and a "dirty and underhanded trick." Part of the problem stems from the different understands of the deal by the Chinese and U.S. parties.
- Oracle and Walmart said in a statement that they would have a combined 20% stake in the new company, called TikTok Global, and that U.S. investors would own a majority of the stock once the company holds an initial public offering within 12 months.
- TikTok's Chinese parent ByteDance said that it would retain 80% ownership of TikTok Global after the U.S. companies take a 20% stake.
- President Trump initially supported the deal, but then said he wouldn't support it if ByteDance did not sell all of its interest in TikTok Global.
- Also, Oracle, Walmart, and Trump all said that ByteDance had agreed to contribute $5B toward U.S. educational programs, something which ByteDance denies.