President Trump has given his “blessing” to a deal that makes Oracle the “trusted technology provider” in the U.S. for Chinese-owned TikTok, asserting that it does in fact address U.S. national security concerns. ByteDance, TikTok’s owner, is said to be seeking a $60 billion valuation, with Walmart and Oracle saying they would share a 20% stake in a new U.S.-based entity that would operate TikTok: Oracle owning 12.5% while providing cloud data services, and Walmart holding 7.5% while providing e-commerce, fulfillment and payment services. The deal still needs formal U.S. approval from the Committee on Foreign Investment.
- A federal judge in California blocked President Trump’s ban on WeChat, siding with users who filed a motion saying they rely on the Chinese-owned app for business and personal matters.
by John C Abell
A grim view on the future of American innovation.
“What we need now are developed economists to explain America’s “fall behind” strategy. Because we are falling behind, in pretty much everything.
As the TikTok process and the earlier Huawei imbroglio show, America is no longer on the leading edge of technology in many key strategic markets. Mainland Chinese companies are globally winning in areas as diverse as 5G and social networks, and without direct government intervention to kill that innovation.”
by Brendan Gahan