Bloomberg reported that this debate has delayed the US government from signing off on the proposed Oracle deal, in which the cloud company would become TikTok's "trusted technology provider" in the US.

As part of the proposed deal, ByteDance would break off TikTok's global business as its own US entity, in which Oracle would become a minority shareholder.

The Committee on Foreign Investment in the US — which reviews transactions between foreign and American companies and declared last month that ByteDance had to divest its US operations — was set to review the proposed deal on Tuesday.

Though it initially appeared as if the Oracle deal would not face any substantial challenges, some US lawmakers wrote a letter Tuesday urging CFIUS and Trump to reject the "completely unacceptable" deal