The United States on Saturday delayed the ban on popular Chinese video-sharing app TikTok till September 27. The decision came after TikTok’s proposal to make multinational firm Oracle its US technology provider and retail company Walmart a commercial partner, AFP reported.

The US Department of Commerce referred to the proposal as a “positive development”. “Secretary of Commerce Wilbur Ross, at the direction of President [Donald] Trump, will delay the prohibition of identified transactions pursuant to Executive Order 13942, related to the TikTok mobile application that would have been effective on Sunday, September 20, 2020, until September 27, 2020 at 11:59 p.m,” it said in a statement.

Advertisement

A spokesperson from TikTok’s parent company ByteDance confirmed the proposal to AFP. “We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US administration and settle questions around TikTok’s future in the US,” the spokesperson said.

The official added that Oracle will become the “trusted technology provider and take responsibility for user data and national security requirements”. She also said that the new deal will create about 25,000 jobs in the US.

US President Donald Trump called the deal “fantastic”. “I have given the deal my blessing,” he said. “If they get it done, that’s great, if they don’t, that’s OK too.”

Advertisement

US had on Friday ordered a ban on TikTok and WeChat from September 20, citing threats to national security.

Last month, Trump had issued executive orders banning transactions with the video app within 45 days if it did not sell off its assets. A week later, he issued another order and gave the company the 90-day ultimatum to close the deal.

Trump had on September 10 refused to extend the September 15 deadline for Chinese company ByteDance to sell TikTok’s American assets. “It’ll either be closed up or they’ll sell it,” Trump had said. “There will be no extension of the TikTok deadline.”