In other TikTok-related news, the Washington Post released a lengthy report delineating what was going on inside the West Wing as Trump laid down the executive order, and others who have an interest in getting the deal done.
As Microsoft, under the impression it had the ‘all-clear’, continued with the talks, just to be stymied by Beijing’s fury over Trump’s executive order, which soured the optics of the scenario and would have made a sale of TikTok appear like a concession on China’s part, others stepped in to intercede with President Trump, who was once again calling the shots while his advisors fought for his ear.
After a succinct refresher on the history of the Trump Administration’s national security issues regarding TikTok, WaPo recognizes VCs with a major investment in ByteDance who actioned in to intercede on the Chinese giant’s behalf, as big-time Silicon Valley dealmakers tried to get closer to the president.
TikTok is considered one of the biggest technological success stories to come out of China. Individuals all over the world utilize the app to make short videos about their lives, animals and dance relocations. Moms and dad company ByteDance CEO Zhang Yiming calls it a “window” into the world.
TikTok has 100 million U.S. users, numerous of whom are under 25 years old.
However with that success came analysis. TikTok was initially determined as a prospective national security danger in summertime 2019, when U.S. authorities approached ByteDance about concerns regarding its acquisition.
That turned into an official national security investigation this year. It was led by the Committee on Foreign Financial Investment in the United States (CFIUS), an interagency body that screens foreign investment deals for nationwide security threats and advises to the president on security premises whether specific proposed acquisitions ought to be rejected.as well as finished acquisitions reversed.
In TikTok’s case, the app has been downloaded more than 175 million times in the United States, and like other apps accesses copious quantities of sensitive personal information, consisting of Internet and browsing activity, location data and search histories. That information is possibly offered to the Chinese federal government under a nationwide intelligence law that requires any Chinese company to “support, assist and cooperate with state intelligence work.”
The news of the examination sent out shudders through the halls of Sequoia Capital.
As Trump’s anger simmered over the past two weeks, with periods of silence regularly stressed by dangers of a restriction, the China trade hawk faction stepped up to attempt and press back against the crowd of wealthy VCs looking for to discourage Trump from pursuing the ban.
The hawks accused the finance people of being precariously supportive to the CCP, and overlooking the good of the nation for the sake of the bottom line. Things (apparently) got heated, and Pete Navarro and Steve Mnuchin entered into what was described as a “tear down, drag out battle”.
In front of Trump, trade adviser Peter Navarro and other aides late recently, Treasury Secretary Steven Mnuchin started arguing that the Chinese-owned video-sharing service TikTok should be offered to a U.S. business. Mnuchin had actually talked a number of times to Microsoft’s senior leaders and was positive that he had rallied assistance within the administration for a sale to the tech giant on nationwide security premises.
Navarro pressed back, demanding an outright ban of TikTok, while accusing Mnuchin of being soft on China, individuals said, speaking on the condition of privacy to talk about personal discussions freely. The treasury secretary appeared shocked, they stated.
The taking place argument– which was explained by one of the people as a “knockdown, drag-out” brawl– was preceded by months of backroom dealings amongst investors, lobbyists and executives. Much of these stakeholders long comprehended the critical nature of developing close connections with crucial figures in the Trump administration.
Naturally, this isn’t the first time Navarro has reportedly “battled” somebody during a meeting, according to the American press. Keep in mind that time he almost beat up Dr. Fauci?
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