The Relationship between The two Economic giants is getting worse day by day over the trade, Hong Kong’s autonomy, Cyberthreat, and mainly upon the spread of the novel corona Virus across the globe. The Popular Chinese App TikTok emerges as the epicenter of dispute among the two nations.
Previously on Friday, The US president was planning to Ban the Chinese App as it poses a threat to national security over the personal data of the Americans. But after a discussion with the Microsoft CEO Satya Nadella, Trump agrees to give 45 days grace to ByteDance to negotiate with Microsoft and sell its popular short video App to Microsoft Corp.
However, It was not clear what changed Trump’s Mind. But it’s said to be the banning might put some adverse effect on Trump during the upcoming November election since TikTok is very popular in many of the young Americans.
Microsoft owns a popular social media network, LinkedIn. This acquisition would give significant competition to its social media rival Facecbook Inc. Under this deal, Microsoft would take over Tiktok’s operations in The US, Canada, Australia, and New Zealand. It will secure all the private and sensitive Data of Americans to be transferred and remains in The US.
It is not yet clear how much Microsoft will pay to acquire TikTok from the Chinese firm, but according to Microsoft might invite other American investors to acquire small shares of TikTok.
Almost 70% of the ByteDance’s outside capital is from The US. According to a report from Reuters, TikTok’s valuation is expected to be more than $50 Million. Although, under The US pressure the price tag may go down.