China Pauses TikTok Deal Post Trump’s Tariff Announcement

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    WASHINGTON — President Donald Trump announced on Friday he is enacting an executive order to allow TikTok to operate in the United States for an additional 75 days. This decision is aimed at giving more time for his administration to facilitate a deal that will transition the social media platform into American ownership.

    The order emerged as officials in the White House believed a negotiation was close to concluding that would see TikTok spun off into a new U.S.-based company. This new entity would be predominantly owned and run by American investors, while China’s ByteDance would retain a minority stake, according to an informant familiar with the ongoing discussions.

    However, a change in stance from Beijing impeded the prospective deal following Trump’s announcement of extensive tariffs globally, which included China. Representatives of ByteDance contacted the White House, signifying that China was halting negotiations until discussions surrounding trade and tariffs commenced, the unnamed source reported, as the negotiations remain confidential.

    Congress had previously determined that TikTok must be divested from China by January 19 or be prohibited in the U.S. due to national security concerns. However, Trump independently extended the deadline to this weekend, as he sought to secure an agreement to maintain the platform’s operations. Meanwhile, Trump considered various offers from American companies looking to purchase a stake in the widely popular app.

    Despite being on the brink of a tentative agreement, the sudden alteration in the Chinese government’s stance complicated TikTok’s ability to clearly communicate the profit reached, fearing repercussions with its dealings with Chinese regulators. The potential agreement, built over several months, involved direct discussions between Vice President JD Vance’s team and multiple potential investors, as well as ByteDance officials. The proposal included a 120-day period intended to complete necessary documentation and financing, obtaining approvals from existing and new investors, ByteDance, and the U.S. administration.

    Initially confident about China’s approval, the Trump administration was disrupted by the newly imposed tariffs. Yet, Trump expressed his belief that the deal can still be secured within the extended timeline. “My Administration has been diligently working on a deal to SAVE TIKTOK, and significant progress has been made,” Trump shared on his social media platform. “Further efforts are required to gain all essential approvals, hence my Executive Order granting TikTok another 75 days to operate.”

    Trump’s additional comments emphasized the administration’s intent to finalize the arrangement with TikTok and China. Meanwhile, a spokesperson for ByteDance confirmed ongoing discussions regarding a “potential solution” with the U.S. government, acknowledging that an agreement has yet to be finalized.

    “Several crucial matters remain unresolved,” noted the ByteDance spokesperson. “Any agreement achieved will be subjected to approval under Chinese law.” TikTok, which operates out of Singapore and Los Angeles, despite scrutiny, claims to prioritize user privacy. Furthermore, the Chinese Foreign Ministry has stated that they do not request companies to gather or supply data held in foreign countries.

    Trump’s decision marks the second instance in which he has temporarily paused the 2024 law prohibiting the operation of TikTok following the expiration of the timeline for ByteDance divestment. The mentioned law was supported across party lines in Congress and upheld by the Supreme Court, which deemed it necessary for national security.

    Rep. Raja Krishnamoorthi, a leading Democrat on the House Select Committee on China and co-author of the TikTok bill, urged a timely resolution. “The time for action is now. We cannot wait. The bidders are set, and deadlines loom. It’s imperative to meet legal standards to preserve TikTok,” he concluded.

    Although the executive decision has sparked some critique, it has yet to face legal objections. Legal analysts suggest such a challenge might be improbable given the complexity of establishing a reasonable basis to sue. According to Sarah Kreps, director of Cornell University’s Tech Policy Institute, “Standing would differ if this were a new platform rather than the continuation of an existing one.”

    The extended timeline, while keeping TikTok in operation, continues to raise national security concerns if ByteDance remains in control of TikTok’s algorithm. Chris Pierson, CEO of BlackCloak, a cybersecurity and privacy protection company, remarked that maintaining algorithm control under ByteDance perpetuates data risk related to its foreign allegiance.

    Pierson added, “Control of data and the algorithm are critical concerns. Without changes in these areas, the risks and motives remain unchanged, even with the extended deadline.”

    The existing law permits one 90-day grace period if there’s a deal in progress and Congress is duly informed. Trump’s current decisions have breached these stipulations, asserted Alan Rozenshtein, an associate law professor at the University of Minnesota. Rozenshtein critiqued Trump’s extension, noting it merely reflects a decision not to enforce the law temporarily.

    Recent public opinions have shown a shift in how Americans view TikTok’s presence in the U.S. A Pew Research Center survey highlights that approximately one-third of Americans now support the ban, a drop from 50% earlier this year. Concerns about data security and user privacy are principal reasons behind the support for prohibiting the app.

    Content creator Terrell Wade, with a significant presence on TikTok, expressed mixed feelings about the extension. “I’m relieved by the extra time, but the cyclical nature of these proceedings is tiring. Each new deadline feels less alarming, turning into noise rather than a threat.” However, Wade remains adaptable, maintaining activity on platforms like Instagram, YouTube, and Facebook.

    The community eagerly awaits resolution to focus beyond uncertainties. Wade commented, “We need clarity so creators like myself can concentrate on our work without lingering doubts.”