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THE GREAT WALL CRACKS: TikTok Admits Defeat, Handing Over Control To Washington Insiders

EconomyTHE GREAT WALL CRACKS: TikTok Admits Defeat, Handing Over Control To Washington Insiders

TikTok, the Chinese video platform on the brink of selling its U.S. operations, has brought on board a seasoned Washington lobbyist.

Reuters reports that on Tuesday, TikTok announced the appointment of Ziad Ojakli as Vice President of Public Policy for the Americas. Ojakli previously managed government relations for Boeing, the American aerospace giant.

At Boeing, Ojakli oversaw government affairs and has also spearheaded lobbying efforts for Ford and SoftBank. His political pedigree includes serving as Deputy Assistant Secretary for Legislative Affairs in the White House during George W. Bush’s administration.

This hiring move is widely seen as an attempt to influence U.S. lawmakers who have raised national security concerns, especially as the deadline to sell TikTok’s U.S. division approaches at the end of January next year.

The current divestiture plan involves creating a new joint venture, with ByteDance reducing its stake to less than 20%. A consortium, including U.S. tech firm Oracle Corporation and private equity group Silver Lake, would acquire the remaining shares.

Rather than surrendering TikTok’s core recommendation algorithm, ByteDance has proposed licensing the technology so that a U.S. company could use it.

However, skepticism in Congress continues to grow over whether Oracle’s management and oversight of TikTok’s algorithm inside the United States can fully remove Chinese influence.

John Thune, a Republican and ranking member of the Senate Commerce Committee, expressed serious reservations about the algorithm licensing plan last October. Meanwhile, Democratic Senator Edward Markey is ramping up pressure on the Biden administration to provide detailed explanations of the sale conditions.

In a related development, Michael Beckerman, who has led TikTok’s aggressive strategy in the United States, will shift into an advisory role.

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