President Trump likely to extend deadline for TikTok's divestment amid negotiations and economic tensions with China.
SAN FRANCISCO, United States — The U.S. federal law mandating the sale or ban of TikTok, the popular social media video-sharing app owned by Chinese company ByteDance, is expected to remain on hold as President
Donald Trump prepares to extend the deadline for compliance.
The forthcoming extension, likely to be the third in this ongoing saga, would push back a requirement originally set to take effect a day before Trump's inauguration on January 20.
In a recent interview, President Trump expressed a favorable view of TikTok, stating, "I have a little warm spot in my heart for TikTok," suggesting he may be inclined to grant an additional extension if necessary.
He noted potential buyers are eager to acquire TikTok's U.S. operations and appeared optimistic about the prospects of a sale.
Despite the national security concerns that prompted the initial consideration of a ban—stemming from fears regarding Chinese government control over the app—Trump's tone has shifted.
Analysts have expressed observations that Trump seems unmotivated to take decisive action against TikTok as long as it continues to maintain a positive impact on his appeal to younger voters ahead of the upcoming election.
The issue of TikTok has escalated amid broader geopolitical tensions, described by experts as a manifestation of the tech rivalry between the U.S. and China.
Shweta Singh, an assistant professor at Warwick Business School, noted that TikTok embodies the intersection of national security, economic policy, and digital governance.
The ban, initially announced with a 75-day delay upon Trump's assumption of office and later extended to June 19, 2020, remains unexecuted with no definitive sale negotiations publicly disclosed by ByteDance.
Reports indicate that a deal might be complicated by ongoing tariff disputes and the need for approval under Chinese law.
Potential solutions discussed within the government include restructuring ByteDance’s U.S. operations to diminish its parent firm's control.
U.S. companies Forbes and private equity firm Blackstone have been named as possible investors to facilitate a transaction that might involve moving U.S. operations into a new independently managed entity.
Infrastructural adjustments have already occurred, with much of TikTok's data stored on Oracle servers, a firm led by longtime Trump supporter Larry Ellison.
However, significant uncertainty lingers regarding the future of TikTok's proprietary algorithm, deemed essential for the app’s competitive advantage.
In the meantime, TikTok continues to operate normally and has launched new generative artificial intelligence (AI) tools aimed at enhancing advertising capabilities, allowing marketers to create video content from text and images.
Andy Yang, TikTok's global head of creative and brand products, highlighted the platform's commitment to empowering its community of users and advertisers.