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

US-China Trade & Technology - The industry is closely monitoring Nvidia's access to China, potential TikTok deal outcomes, and ongoing US-China trade relations [1] - China's focus on domestic supply chain resilience, particularly in the chip sector, is a significant trend [1] - The H200 chip is expected to benefit Chinese AI companies [1] TikTok Deal Analysis - Investors are scrutinizing the structure of the potential TikTok deal [3] - ByteDance, TikTok's parent company, is likely to retain control over TikTok's algorithm, which is considered the app's core asset [3][4] - Beijing has consistently refused to relinquish control of the algorithm [4][6] - The US administration is seemingly lowering its expectations regarding control over the algorithm in the TikTok deal [4] National Security Concerns - Concerns persist regarding national security if ByteDance maintains control over TikTok's algorithm [6][7] - The US Congress initially opposed the deal due to national security risks associated with an adversary-controlled company managing the algorithm [6] - Beijing imposed export controls on the algorithm, which remain in effect [6][7] - The US National Security Strategy highlights foreign interference in US media as a problem, raising questions about the TikTok deal [8]