China on Wednesday reaffirmed that any potential deal involving the sale or restructuring of TikTok must comply with its domestic laws, doubling down on its position as the United States pushes for a resolution over the app’s U.S. operations.
The statement comes in response to U.S. President Donald Trump’s decision last week to extend the deadline for TikTok’s divestment by 75 days, after progress on a proposed deal to spin off its American assets was reportedly paused.
Beijing’s latest comments suggest that the Chinese government remains firm in its stance, especially following heightened tensions over tariffs announced by the U.S. in recent weeks.
In a statement posted on its official website, a spokesperson for China’s Ministry of Commerce said: “China opposes practices that ignore the laws of the market economy, plunder by force, and damage the legitimate rights and interests of enterprises.” The ministry added that “specific business arrangements must comply with Chinese law, including the export of technology, which must be approved by the Chinese government.”
At the heart of the dispute is TikTok’s recommendation algorithm, widely seen as the crown jewel of its China-based parent company, ByteDance. Under a 2020 law enacted by Beijing, the export of sensitive technologies—including recommendation systems powered by artificial intelligence—requires government approval.
This legal provision casts doubt over any potential deal that involves transferring core technology out of China, and may complicate efforts by U.S. buyers to acquire TikTok’s U.S. operations without Beijing’s sign-off.
TikTok, which boasts over 170 million American users, has been under increasing scrutiny in Washington over national security concerns.
The Biden administration has maintained pressure on ByteDance to divest its American assets or risk a ban, continuing a policy approach started under the Trump administration.
