(Yicai Global) Sept. 21 -- ByteDance Technology, the owner of short video platform TikTok, said it will own most of the new company to be set up in the US as part of the deal to save TikTok's operations in the country.

In a notice posted on its official WeChat account today to clarify issues such as future ownership, source code and taxes, Beijing-based ByteDance said it will own 80 percent of TikTok Global after the new entity wraps up a financing round before going public. ByteDance added that it will not relinquish control of the rights to TikTok.

Two days ago US President Donald Trump approved the agreement by which Oracle and Walmart will take a minority stake in TikTok Global. The deal follows Trump's earlier threat to ban the popular app due to alleged national security concerns unless it found a US buyer.

Giving governments access to a multinational company's source code is the usual way of dispelling concerns over data security, ByteDance said about speculation that California-based Oracle is likely to take over TikTok's source code.

Microsoft set up a technology transparency center in Beijing in 2016 to allow Chinese technical experts to vet the source code of its products and services for security risks. Cisco Systems formed a technical verification center in Bonn, Germany last year for the country's Federal Office for Information Security to scrutinize the compliance of the firm's fifth-generation wireless communications network source code.

A USD5 billion tax payment that TikTok Global is reported to make to the US treasury is just an estimate of the enterprise income tax and other business taxes TikTok will have to fork over in the next few years, ByteDance said. The actual figure will be decided based on the firm's business performance and the US tax structure, it said. The projected taxes have nothing to do with the TikTok deal, it added.

ByteDance has been committed to investment in education and also plans to join hands with its partners and global shareholders to start online courses for students worldwide based on artificial intelligence and video technologies, the firm said, confirming its rumored education fund.

Editor: Ben Armour