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ByteDance Hands TikTok Control to Oracle Group as China Calls for Fair Treatment

MarketDash Editorial Team
5 hours ago
ByteDance is transferring control of TikTok's U.S. operations to an Oracle-led investor group to dodge a potential ban, while China urges Washington to play fair. Meanwhile, ByteDance plans to pour $23 billion into AI infrastructure next year.

The long-running saga of TikTok's fate in America took another turn Thursday as China weighed in on ByteDance's decision to hand over control of the app's U.S. operations to an Oracle Corp. (ORCL)-led investor group. Beijing's message to Washington? Let's work together and keep things fair.

Beijing Pushes for Cooperation

China wants the companies involved in the TikTok transaction to find solutions that comply with Chinese laws while balancing everyone's interests, according to Reuters. Speaking at a press briefing, Commerce Ministry spokesperson He Yongqian said Beijing expects the U.S. to cooperate with China and honor its commitments tied to the deal.

He urged the U.S. to "work with China in the same direction" and provide what he called a "fair, open, transparent and non-discriminatory" business environment. The goal is allowing Chinese companies to operate in the U.S. on a stable and continuous basis, which sounds reasonable enough until you remember the broader tech tensions simmering between the two countries.

The Deal to Dodge a Ban

ByteDance, TikTok's China-based parent company, signed binding agreements last week to transfer control of the app's U.S. business to a group of investors that includes Oracle. This move is designed to end years of regulatory limbo and sidestep a potential U.S. ban driven by national security worries.

U.S. officials have consistently argued that TikTok's ownership structure could expose American user data to the Chinese government. ByteDance has repeatedly denied this, but the concerns have persisted long enough to force this restructuring.

ByteDance's AI Ambitions

While dealing with its TikTok troubles, ByteDance is also ramping up its artificial intelligence game. The company is reportedly preparing to spend about CNY 160 billion, or roughly $23 billion, on AI infrastructure in 2026. That's up from approximately CNY 150 billion invested this year.

ByteDance ranks among China's leading builders of AI infrastructure and has ambitions to compete globally. But here's some perspective: that $23 billion, while substantial, still trails far behind U.S. tech giants. Companies including Microsoft Corp. (MSFT), Alphabet Inc. (GOOG) (GOOGL), Amazon.com, Inc. (AMZN), and Meta Platforms, Inc. (META) have collectively invested close to $400 billion this year to expand data centers that support AI models and services.

That's not just a gap, it's a chasm. ByteDance is playing catch-up in a race where the American tech leaders have a significant head start and much deeper pockets.

Broader Tech Tensions

The TikTok deal and AI spending announcements come against a backdrop of escalating U.S.-China tech competition. Earlier this week, the Donald Trump administration signaled a hard-line approach toward Chinese semiconductors while postponing the imposition of tariffs until 2027.

The semiconductor issue adds another layer to an already complicated relationship between the world's two largest economies. Technology has become the primary battleground for geopolitical influence, with companies like ByteDance caught in the crossfire.

As this plays out, Oracle finds itself in an interesting position as the lead investor in TikTok's U.S. operations. Whether this arrangement satisfies both Washington's security concerns and Beijing's demands for fair treatment remains to be seen. For now, ByteDance has made its move, China has stated its expectations, and everyone's waiting to see if this solution actually sticks.

Back to Stock Market News

ByteDance Hands TikTok Control to Oracle Group as China Calls for Fair Treatment

MarketDash Editorial Team
5 hours ago
ByteDance is transferring control of TikTok's U.S. operations to an Oracle-led investor group to dodge a potential ban, while China urges Washington to play fair. Meanwhile, ByteDance plans to pour $23 billion into AI infrastructure next year.

The long-running saga of TikTok's fate in America took another turn Thursday as China weighed in on ByteDance's decision to hand over control of the app's U.S. operations to an Oracle Corp. (ORCL)-led investor group. Beijing's message to Washington? Let's work together and keep things fair.

Beijing Pushes for Cooperation

China wants the companies involved in the TikTok transaction to find solutions that comply with Chinese laws while balancing everyone's interests, according to Reuters. Speaking at a press briefing, Commerce Ministry spokesperson He Yongqian said Beijing expects the U.S. to cooperate with China and honor its commitments tied to the deal.

He urged the U.S. to "work with China in the same direction" and provide what he called a "fair, open, transparent and non-discriminatory" business environment. The goal is allowing Chinese companies to operate in the U.S. on a stable and continuous basis, which sounds reasonable enough until you remember the broader tech tensions simmering between the two countries.

The Deal to Dodge a Ban

ByteDance, TikTok's China-based parent company, signed binding agreements last week to transfer control of the app's U.S. business to a group of investors that includes Oracle. This move is designed to end years of regulatory limbo and sidestep a potential U.S. ban driven by national security worries.

U.S. officials have consistently argued that TikTok's ownership structure could expose American user data to the Chinese government. ByteDance has repeatedly denied this, but the concerns have persisted long enough to force this restructuring.

ByteDance's AI Ambitions

While dealing with its TikTok troubles, ByteDance is also ramping up its artificial intelligence game. The company is reportedly preparing to spend about CNY 160 billion, or roughly $23 billion, on AI infrastructure in 2026. That's up from approximately CNY 150 billion invested this year.

ByteDance ranks among China's leading builders of AI infrastructure and has ambitions to compete globally. But here's some perspective: that $23 billion, while substantial, still trails far behind U.S. tech giants. Companies including Microsoft Corp. (MSFT), Alphabet Inc. (GOOG) (GOOGL), Amazon.com, Inc. (AMZN), and Meta Platforms, Inc. (META) have collectively invested close to $400 billion this year to expand data centers that support AI models and services.

That's not just a gap, it's a chasm. ByteDance is playing catch-up in a race where the American tech leaders have a significant head start and much deeper pockets.

Broader Tech Tensions

The TikTok deal and AI spending announcements come against a backdrop of escalating U.S.-China tech competition. Earlier this week, the Donald Trump administration signaled a hard-line approach toward Chinese semiconductors while postponing the imposition of tariffs until 2027.

The semiconductor issue adds another layer to an already complicated relationship between the world's two largest economies. Technology has become the primary battleground for geopolitical influence, with companies like ByteDance caught in the crossfire.

As this plays out, Oracle finds itself in an interesting position as the lead investor in TikTok's U.S. operations. Whether this arrangement satisfies both Washington's security concerns and Beijing's demands for fair treatment remains to be seen. For now, ByteDance has made its move, China has stated its expectations, and everyone's waiting to see if this solution actually sticks.