TikTok deal stalled amid US-China trade tensions
Talks about spinning off TikTok’s US operations have hit a wall after China signalled disapproval following President Trump’s new tariff hikes.
Negotiations to divest TikTok’s US operations have been halted following China’s indication that it would not approve the deal. The development came after President Donald Trump announced increased tariffs on Chinese imports.
The proposed arrangement involved creating a new US-based company to manage TikTok’s American operations, with US investors holding a majority stake and ByteDance retaining less than 20%. This plan had received approvals from existing and new investors, ByteDance, and the US government.
In response to the stalled negotiations, President Trump extended the deadline for ByteDance to sell TikTok’s US assets by 75 days, aiming to allow more time for securing necessary approvals.
He emphasised the desire to continue collaborating with TikTok and China to finalise the deal, expressing a preference to avoid shutting the app in the US.
The future of TikTok in the US remains unpredictable as geopolitical tensions and trade disputes continue to influence the negotiations.
On one side, such a reaction from the Chinese government could have been expected in exchange for the increase of US tariffs on Chinese products; on the other side, by extending the deadline, Trump would be able to maintain his protectionist policy while collecting sympathies from 170 million US citizens using the app, which now is a victim in their eyes as it faces potential banning if the US-China trade war doesn’t calm down and a resolution is not reached within the extended timeframe.
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