US Extends TikTok Operations as China Suspends Split Plan Amid Tariff Dispute
18 April 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/04/05/china-puts-brakes-on-tiktok-split-over-tariffs/
On September 4th local time, President Trump announced an executive order extending TikTok鈥檚 operations in the United States by another 75 days. This extension aims to provide additional time for government entities to finalize a deal ensuring that the platform is wholly owned and operated under American interests. Sources cited by foreign media previously indicated White House officials believed they were close to finalizing such an agreement, which would have allowed ByteDance鈥擳ikTok鈥檚 parent company based in China鈥攖o spin off its U.S. operations into a new entity within the United States. However, this plan was suspended due to reciprocal tariffs imposed on Chinese goods and services; progress is currently stalled pending trade talks.
According to a report from The Los Angeles Times published September 3rd, ByteDance has indefinitely postponed plans to sell TikTok鈥檚 American operations following Trump's announcement of proposed global equalizing tariffs. An anonymous market insider revealed that representatives for ByteDance contacted the White House, stating China would not approve any deal until trade and tariff negotiations resume.
Congress previously mandated that ByteDance divest itself of TikTok鈥檚 U.S. operations by January 19th, 2025, or face a ban in America. Trump's extension provides additional time for the company to operate while awaiting further guidance from his administration regarding next steps.
Initially, Trump had proposed an agreement where U.S. investors would hold and manage most of TikTok鈥檚 shares, with ByteDance retaining minority ownership. However, this plan has been indefinitely postponed due to tariffs imposed on Chinese goods by America until trade talks resume. Despite these tariff concerns, Trump expressed confidence that the deal could still be approved but acknowledged further work is needed for all necessary approvals.
A spokesperson from ByteDance confirmed in a statement their ongoing discussions with U.S. authorities regarding potential solutions; however, they emphasized that key issues remain unresolved and any agreement must comply with Chinese law.
According to a report from The Los Angeles Times published September 3rd, ByteDance has indefinitely postponed plans to sell TikTok鈥檚 American operations following Trump's announcement of proposed global equalizing tariffs. An anonymous market insider revealed that representatives for ByteDance contacted the White House, stating China would not approve any deal until trade and tariff negotiations resume.
Congress previously mandated that ByteDance divest itself of TikTok鈥檚 U.S. operations by January 19th, 2025, or face a ban in America. Trump's extension provides additional time for the company to operate while awaiting further guidance from his administration regarding next steps.
Initially, Trump had proposed an agreement where U.S. investors would hold and manage most of TikTok鈥檚 shares, with ByteDance retaining minority ownership. However, this plan has been indefinitely postponed due to tariffs imposed on Chinese goods by America until trade talks resume. Despite these tariff concerns, Trump expressed confidence that the deal could still be approved but acknowledged further work is needed for all necessary approvals.
A spokesperson from ByteDance confirmed in a statement their ongoing discussions with U.S. authorities regarding potential solutions; however, they emphasized that key issues remain unresolved and any agreement must comply with Chinese law.