Trump TikTok Proposal Deal: Echoes Biden-Era Rejection

After years of uncertainty, ByteDance may soon finalize an agreement that could reshape TikTok’s future in the United States. Despite legal hurdles, the Trump TikTok proposal deal seems to leave the Chinese parent company in control of key elements such as advertising, e-commerce, and recommendations. Reports suggest ByteDance could also secure about 50% of TikTok’s U.S. revenue under profit-sharing arrangements.

ByteDance’s Lasting Grip

This development comes despite Donald Trump’s earlier executive order stating TikTok’s U.S. arm must cut all operational ties with ByteDance. However, leaked documents reveal that the structure of Trump’s proposal closely mirrors earlier Biden-era plans. Under those, ByteDance would still influence budget decisions, assets, and even bankruptcy options.

The central element of both discussions was Project Texas. The idea was to create TikTok U.S. Data Services (USDS), an entity run separately with data hosted on Oracle’s U.S. servers. But Biden’s White House rejected it, pointing out that critical aspects—like source code, algorithm management, and staff oversight—would still rest in China.

Advertising at the Core

One of the biggest sticking points is TikTok’s advertising division. Reports suggest ByteDance-controlled entities would manage ad sales and e-commerce. This raises national security alarms, as TikTok ads have previously been used to spread Chinese state propaganda. Critics warn this setup could let ByteDance push targeted messaging toward U.S. audiences.

Government Oversight Questions

Uncertainty also surrounds the role of U.S. government oversight. Some reports indicate federal agencies might seek veto powers over hiring, privacy, or content policies. While officials say no equity stake will be taken, questions remain over how much control Washington will exercise.

Project Texas vs. Trump’s Deal

Experts argue that the Trump plan and Project Texas differ mainly in branding. Calling it a “sale” gives the impression of stronger safeguards, yet the substance appears similar. ByteDance may still maintain control of TikTok’s U.S. operations, raising doubts over compliance with U.S. law.

What’s Next for TikTok?

Congress and regulators now face the challenge of deciding whether this arrangement genuinely separates TikTok from ByteDance. For now, the Trump TikTok proposal deal looks like ByteDance’s closest attempt to maintain influence, though lawmakers may still push for a full ban if they find national security risks unresolved.

FAQs

1. What is Project Texas?
It was ByteDance’s plan to create TikTok U.S. Data Services, storing data on Oracle-managed U.S. servers. Critics argued ByteDance would still hold too much influence.

2. Why is advertising control a concern?
Advertising funds TikTok and shapes what content users see. ByteDance’s control could allow propaganda or biased campaigns to spread.

3. How do Trump’s and Biden’s plans compare?
They are similar, but Trump’s is marketed as a “sale.” In reality, ByteDance may still influence operations.

4. Will the U.S. government have control?
Possibly through veto powers, but officials deny any ownership stake.

5. Could TikTok still be banned?
Yes, if lawmakers believe the deal doesn’t meet security requirements, a U.S. ban remains possible.

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adeel

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