TikTok takes further steps to maintain operations in the US: Reuters

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In its latest persuade to assure the US government and convince it to stay operational under its owner ByteDance, the Chinese app TikTok offered to subject an increased amount of its business to foreign auditing.

A report published by Reuters on Thursday said that the popular app has been "seeking to assure U.S. government departments and agencies for the last three years" that China's Communist Party (CCP) can't access the "personal data of U.S. citizens" nor influence its content.

TikTok has come under severe attack from within the Democratic and Republican parties, while the US administration is considering a proposal regarding the continuation of the app's operation in the United States.

The Biden administration is seeking a security agreement to keep TikTok operating in the United States and to avoid a ban that Donald Trump proposed during his term.

"Negotiations between his [Biden] administration and the social media company continued over a potential deal that would address the security concerns," added the report.

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Members of the US Congress are increasing pressure on the White House to ban TikTok as part of a larger set of a falling-out between Washington and Beijing concerning trade and intellectual property.

The video app revealed that it has proposed an agreement to route and store all US user traffic and data in a United States Data Security (USDS) division with the servers being maintained and audited by Oracle Corporation.

Reuters cited a source informed on that matter stating that TikTok has so far spent around $1.5 billion to employ personnel and commit to structural reorganization for the unit (Data storage center).

Despite the offer, US officials from the defense department, CIA, and the FBI are still against the "security deal".

"These officials argue that TikTok's users would continue to be vulnerable because the app would still rely for its technology on ByteDance, which also operates Chinese short-video app Douyin."

The report added, according to the source, that the app, "has expanded Oracle's role to ensuring that TikTok's technology infrastructure is separate from ByteDance," adding that, "Oracle will review both app codes, which determine the look and feel of TikTok, and server codes, which provide functions such as search and recommendations."

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The first data center, which will be accessible to Oracle engineers to perform visits and review the operations, is expected to be completed in January in Maryland.

TikTok has also proposed to form a "proxy" board that would run the USDS division independent of ByteDance, the sources said.

According to another source, the app also suggested establishing a "proxy" board "that would run the USDS division independent of ByteDance," the report added.

The new division will be overseen by a former US secret service agent, Andrew Bonillo, as an interim director, "until a security deal with the U.S. is reached it reports to TikTok Chief Executive Shou Zi Chew."

ByteDance would not be in control of the board or its decisions, despite covering its operational costs.

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"The USDS board would have three members who would be screened by the Committee on Foreign Investment in the United States (CFIUS), a national security panel," Reuters added citing an unnamed source.

The sources requested anonymity to discuss Oracle's expanded role, the proposed proxy board, and details of the hiring and spending at TikTok, which are reported here for the first time.

A TikTok spokeswoman declined to comment on specific concessions the company has made to the U.S. government but said that the solution to security concerns it put to CFIUS was "comprehensive."

She added that TikTok has not had any discussions with the U.S. government "on the substance of the proposed agreement" since the end of the summer.

"We have made substantial progress on implementing that solution over the past year, and look forward to completing that work to put these concerns to rest," TikTok spokesperson said, adding that the company proposed solution regarding security concerns was "comprehensive."

The spokesperson however rejected to add further details regarding the deal.

The news site added that US officials familiar with the negotiations stated that the measures TikTok is introducing could be part of a deal to allow ByteDance to maintain ownership over the app, noting that so far it is not clear if the White House will accept the security agreement or not, who will ultimately decide the fate of the deal.

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According to the report, the US justice and treasury departments have been leading the talks with the video app and are "open to a deal to avoid the kind of legal challenge from the company that bogged down Trump's bid to force a divestment."

US President Joe Biden, upon listening to arguments president by departments related to this issue, will have the final say about the security deal.

Earlier this month, following concerns from the FBI director and cybersecurity experts that China may exploit the social media platform, TikTok for allegedly spying on US citizens, Senator Marco Rubio, the top Republican on the Senate Intelligence Committee, and a bipartisan pair of congressmen in the House, proposed a bill that would prohibit TikTok in the United States.

The bill, according to the statement, would "protect Americans by blocking and prohibiting all transactions from any social media company in, or under the influence of, China, Russia, and several other foreign countries of concern."

The bill will also explicitly designate TikTok and its parent company, ByteDance, as social media firms for the purposes of the legislation.

The US actions contrast with the protracted discussions that TikTok has had with the US government for years over a potential agreement that may enable the company to handle national security issues and to continue providing services to US consumers.

It's noteworthy that the US Federal Communications Commission (FCC) banned, in November, equipment authorizations for video surveillance equipment or telecoms manufactured by Chinese companies Huawei and ZTE, calling them "a threat to national security."

According to the order, the restriction builds on efforts by the Commission, Congress, and the Biden administration to take unprecedented action as they continue to pressure China and challenge the One China policy.