Trump expresses fondness towards TikTok, yet government officials assert that Chinese ownership of the app remains unacceptable, with the deadline for resolving this issue rapidly approaching.
In the digital world, the fate of one of the most popular short video apps, TikTok, is hanging in the balance. With approximately 170 million American users, the Chinese-owned platform is facing a crucial decision regarding its future.
Secretary of Commerce Howard Lutnick has made it clear that TikTok needs to transition to US ownership to secure its continued operation within the country. This statement comes as President Trump has extended the deadline for ByteDance, TikTok's parent company, to divest its US assets to September 17, originally set for January 19.
The President has expressed a liking for the app, but his actions have not been without controversy. Trump has granted three reprieves from federal enforcement of the TikTok sale or shutdown law, and his announcements of steep tariffs on Chinese goods have reportedly stalled a potential deal.
If a deal is not approved by China, TikTok may have to cease operations in the US. Lutnick warned last week that this could be a possibility if China does not approve a deal for the app. He emphasised the need for the US to control the algorithm that makes TikTok function, and he also mentioned that a deal would involve a new US-based firm, majority-owned and operated by US investors.
The 2024 law mandates a sale or shutdown of TikTok if there has not been significant progress by January 19. However, the approval from the Chinese government for the sale of TikTok's US operations is not definitively expected by any specific date. The timing of Chinese approval remains uncertain, as progress on the sale had not occurred as of early 2024, and US laws allow only a 90-day extension for the ban if such progress is made.
Lutnick believes that the President is positive towards TikTok if it can move into American hands. He stated that Americans will own the technology and control the algorithm of TikTok if a deal is approved. The new deadline is set for September 17, 90 days later than the original deadline.
The decision regarding TikTok's future in the US is a significant one, with potential implications for the millions of Americans who use the app daily. The coming weeks will likely see a resolution to this issue, as both the US and Chinese governments work towards a decision.
