Alex Omenye
Efforts to finalize a deal to spin off TikTok’s United States’ operations have been put on hold after China signaled disapproval following President Donald Trump’s announcement of a sharp increase in tariffs on Chinese goods, Reuters reported.
Trump on Friday extended the deadline for TikTok’s Chinese parent company, ByteDance, to divest its U.S. assets by 75 days. The sale, mandated under a 2024 law, was initially set to be completed by mid-January but now faces a new mid-June deadline.
The proposed deal, which had won backing from ByteDance, U.S. officials, and investors, would have created a U.S.-based entity for TikTok, with American investors holding over 80% ownership. ByteDance would retain less than a 20% stake. However, ByteDance said on Saturday that significant differences remain and no agreement has been finalized.
China’s foreign ministry reiterated that it opposes actions that undermine market principles and stressed that any deal must undergo proper regulatory reviews under Chinese law. The Associated Press first reported China’s pushback.
Trump’s administration, now in its second term, has signaled willingness to negotiate, but tensions over trade remain high. The U.S. recently raised tariffs on Chinese goods to 54%, sparking retaliation from Beijing.
Despite bipartisan support for stricter oversight of TikTok due to national security concerns, Trump delayed enforcing the original ban. The Justice Department also paused enforcement, allowing TikTok to remain on app stores.
Key ByteDance investors, including Susquehanna International Group and General Atlantic, are leading efforts to finalize a sale. However, Walmart has denied involvement in the latest talks.
Trump, while acknowledging China’s displeasure, said on Friday, “We do not want TikTok to go dark,” adding he hopes negotiations will continue in good faith.
