TikTok Deal Leaves National Security Risk, Garnaut's Tobin Says

Core Insights - The ongoing negotiations regarding TikTok's future in the U.S. involve significant complexities, particularly concerning the control of its algorithm by ByteDance, which is critical to the app's functionality and user engagement [3][4][6]. Group 1: TikTok Deal and Algorithm Control - The deal involving TikTok is not yet finalized, and investors are closely analyzing its structure, particularly the control of the algorithm by ByteDance [3][4]. - Beijing has consistently refused to relinquish control of TikTok's algorithm to U.S. investors, which is a central issue in the negotiations [4][6]. - The Trump administration has been lowering expectations regarding the deal, indicating a potential settlement where ByteDance retains control over the algorithm, raising concerns about U.S. national security [4][6][7]. Group 2: National Security Concerns - There are significant national security implications if ByteDance maintains control over TikTok's algorithm, drawing parallels to historical concerns during the Cold War regarding foreign influence in U.S. media [6][7]. - The U.S. Congress passed laws to address national security risks associated with foreign-controlled companies like ByteDance, which underscores the ongoing tension in these negotiations [6][7][8]. - The Trump administration's national security strategy highlights the issue of foreign interference in U.S. media, which contradicts the potential deal with TikTok [8].