Last week, the Trump administration believed they had found a plan to save TikTok from being banned in the United States due to national security concerns. The plan involved restructuring the ownership of the app to comply with U.S. regulations. However, the deal hit a snag when China refused to allow it to proceed after the announcement of new tariffs by President Trump on Chinese imports. In response, Trump extended the deadline for a TikTok deal into mid-June.
The negotiations between ByteDance, TikTok’s owner, and the U.S. government involved new investors owning 50% of TikTok, with Chinese owners retaining less than 20%. Despite the progress, issues arose as certain new investors viewed the deal as conditional and dependent on due diligence. The negotiations also highlighted the power struggle between the U.S. and China, with TikTok caught in the middle.
The uncertainty around TikTok’s future further escalated with the ongoing trade war between the two countries, with tariffs being used as leverage for negotiations. Despite the challenges, ByteDance maintained that TikTok was not for sale, while acknowledging that any agreement would need approval under Chinese law.
The future of TikTok remains uncertain as the negotiations between ByteDance and the U.S. government continue. However, the issue may become even more complicated as the trade war between the U.S. and China escalates. In the meantime, the fate of TikTok hangs in the balance, with the possibility of further extensions and negotiations in the coming months.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
