Oracle confirmed that the company has reached an agreement with ByteDance, owner of popular video-sharing app TikTok, to become a "trusted technology provider" of the latter, but the deal is still subject to the approval of the U.S. government.

Prior to this, Microsoft just announced that ByteDance rejected Microsoft's acquisition of TikTok's U.S. operations.

Headquartered in California, Oracle is the world's leading enterprise software company. It formally entered the Chinese market in 1989. In 2013, it exceeded IBM to become the world's second largest software company following Microsoft.

United States Treasury Secretary Steven Mnuchin said that the U.S. government plans to review the deal this week. He said from their standpoint, they need to make sure that the code is secure, Americans' data is secure, and the phones are secure. Their technical teams will be looking to have discussions with Oracle over the next few days.

It is said that Oracle is not the only American company that intends to cooperate with TikTok. Wal-Mart previously revealed on its official website that the company was interested in investing in TikTok targeting the e-commerce and advertising sectors.