Trump wants 'cut' from TikTok deal for its sale to United States operations

US President Donald Trump on September 1 pushed for action on the sale of TikTok shares to the United States operations and asked for "any piece of shares" for the US Treasury despite no authority. Trump had earlier issued executive orders to not only ban China-owned app that he links with cybersecurity risks but had also given a deadline to Americans to halt business with the company, effective this month. They had until September 15 to make a deal, after that, we close it up in this country, Trump was reported saying while addressing reporters outside the White House. At a recent press address, Trump declared a provision, saying, a “substantial” portion of the likely TikTok-Microsoft deal must be dedicated to American acquisition.

While critics have called Trump’s legal action against TikTok as unconstitutional and as likely extortion with a political motive, Trump made clear that the United States had to be “compensated”. Insisting that the US government get a “cut” of the deal, Trump said that because his administration was making the deal possible, therefore, it is entitled to have a compensation, while speaking at a White House presser. Clearly, the US president demanded any bit of portion from the offering, but with “well compensated”, indicated a larger share.

In a separate statement, the TikTok video app owners said that the company, moving further, would “strictly abide” by new export guidelines in China that will make the complex sale of business portion viable as directed by President Donald Trump. According to China’s state-run media reports, Xi Jinping approved a new set of rules published by China's commerce ministry last week that added the "civilian use” clause to technological firms and products restricted for export abroad. New regulations, would be the first since China's export bans and restrictions on technological goods in 2008 that had made it a challenge for ByteDance to sell its US operations to Microsoft or any other US firm under Trump’s executive orders. 

"The [Trump] administration ignored our extensive efforts to address its concerns, which we conducted fully and in good faith,” Tiktok said in a press release. TikTok accused Donald Trump of “furthering the anti-China political campaign.”

It said that the US government’s actions were not based on solid evidence and facts and were standing on "hearsay" suspicions. 

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TikTok’s CEO steps down

Only last week, TikTok’s CEO Kevin Mayer quit the company in the aftermath of filing a lawsuit against the Trump administration’s crackdown on TikTok. The firm indulged in a legal battle as it sued the US President Trump post detailed scrutiny conducted by lawmakers over national security concerns. In a separate lawsuit, the Trump administration was dragged into court by the TikTok employee who argued that the ban threatens the livelihood of those employed with TikTok. Video app company filed a lawsuit at the federal court against the Commerce Department, President Donald Trump, and Commerce Secretary Wilbur Ross that questioned the President’s  “impermissibly banning" of the app and sought to overturn his executive order.

“In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for," TikTok Chief Executive Officer Kevin Mayer was quoted by AP as saying. 

"Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company," he added.

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