U.S. And Chinese Trade War Could Affect Tik Tok Deal

As corporate allies of President Donald Trump scramble to broker a deal to sell the app to an American bidder, TikTok’s Chinese owner seems to be slow-rolling negotiations for a sale.

Even if US investors are willing to pay the multibillion-dollar price tag, ByteDance, a large international corporation, has little to gain from selling TikTok.

But as it waits for a “grand deal” with the Trump administration that includes major trade and tech policy concessions, Beijing is more likely to adopt a tough stance.

This stance allows TikTok’s U.S. operations to fail rather than authorizing a sale, according to one of the people and experts.

According to those involved with the discussions, ByteDance, the parent company of TikTok, is delaying the process while it awaits clues from Beijing, which is growing more cautious.

Trump used emergency economic powers to impose broad tariffs on Chinese imports this week as tensions between the two countries have escalated into a trade war.

In response, Beijing imposed its own set of regulations, which included a Google antitrust probe and curbs on the export of minerals required to produce high-tech goods.

Trump, who has pledged to “save TikTok” by halting the implementation of legislation requiring the app’s sale or ban while he negotiates divestment, is likely to have his efforts undermined by the technique.

Additionally, it would destroy a service that 170 million people rely on across the country for social interaction and entertainment.

TikTok Ban Update

President Joe Biden signed the sale-or-ban bill last year to address worries that ByteDance, the parent firm of TikTok, based in China, could endanger the national security of the company’s customers.

To “pursue a resolution” that does not involve a total ban, Trump signed an executive order on his first day in office.

This executive order instructs his Justice Department to refrain from enforcing the legislation for 75 days.

Since Trump pressed for the app’s forced sale during his first term, China has vowed to prevent the sale of TikTok and added the app’s core recommendation system to an export control list.

Last year, Beijing said that the United States had justified the forced transaction by applying “robbers’ logic.”

However, China recently appeared to budge, stating that these choices ought to be “made by the companies themselves.”

According to some geopolitical analysts, TikTok may be used as leverage in trade and tariff negotiations between the two countries.