TikTok steps up efforts to clinch U.S. security deal

Popular short-video app TikTok is offering to operate more of its business at arm’s length and subject it to outside scrutiny as it tries to convince the U.S. government to allow it to remain under the ownership of Chinese technology company ByteDance, according to people familiar with the matter.

U.S. lawmakers seeking to crack down on China as part of broader set of disputes over trade, intellectual property and human rights have seized on the security concerns over TikTok to pressure the White House to take a hard line. To overcome these hurdles, TikTok has sought to provide new layers of oversight to the U.S. government. It has expanded Oracle’s role to ensuring that TikTok’s technology infrastructure is separate from ByteDance, the sources said.

The USDS board would have three members who would be screened by the Committee on Foreign Investment in the United States , a national security panel, the sources said. ByteDance would not have control over the board and its decisions even though it would pay for the USDS division’s operations, the sources added.

A TikTok spokeswoman declined to comment on specific concessions the company has made to the U.S. government but said that the solution to security concerns it put to CFIUS was “comprehensive.” She added that TikTok has not had any discussions with the U.S. government “on the substance of the proposed agreement” since the end of the summer.

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