TikTok gets another extension, and again for 75 days. The US President Donald Trump extended the deadline for ByteDance to divest TikTok's U.S. assets by 75 days. This move delays a potential ban initially slated for January under a 2024 law. The new Trump order will set a mid-June deadline for a deal.
The extension comes amid ongoing negotiations for a restructuring plan. This plan involves major non-Chinese ByteDance investors increasing their stakes and acquiring TikTok's U.S. operations, creating a separate U.S. entity. The goal is to reduce Chinese ownership below the 20% threshold required by U.S. law, thereby avoiding a ban.
Donald Trump's 'TikTok message' to China
Trump explained the extension on social media, stating, "The deal requires more work to ensure all necessary approvals are signed." He also linked the extension to trade tensions with China, noting, "We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs." This comes after Trump's recent tariff increase on Chinese goods, which prompted retaliatory measures from China. Trump indicated a willingness to reduce tariffs if a TikTok deal is reached.
What TikTok's Chinese parent said
ByteDance confirmed ongoing discussions but stated, "An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law."
The biggest obstacle in TikTok becoming an American company
A significant obstacle to the TikTok sale is Chinese government approval, which remains uncertain. China has not made a public commitment to allow a sale and Trump's comments suggested renewed Chinese opposition. Trump acknowledged this, stating, "We look forward to working with TikTok and China to close the deal." He also emphasized his desire to keep TikTok operational in the U.S., adding, "We do not want TikTok to 'go dark.'
The extension comes amid ongoing negotiations for a restructuring plan. This plan involves major non-Chinese ByteDance investors increasing their stakes and acquiring TikTok's U.S. operations, creating a separate U.S. entity. The goal is to reduce Chinese ownership below the 20% threshold required by U.S. law, thereby avoiding a ban.
Donald Trump's 'TikTok message' to China
Trump explained the extension on social media, stating, "The deal requires more work to ensure all necessary approvals are signed." He also linked the extension to trade tensions with China, noting, "We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs." This comes after Trump's recent tariff increase on Chinese goods, which prompted retaliatory measures from China. Trump indicated a willingness to reduce tariffs if a TikTok deal is reached.
What TikTok's Chinese parent said
ByteDance confirmed ongoing discussions but stated, "An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law."
The biggest obstacle in TikTok becoming an American company
A significant obstacle to the TikTok sale is Chinese government approval, which remains uncertain. China has not made a public commitment to allow a sale and Trump's comments suggested renewed Chinese opposition. Trump acknowledged this, stating, "We look forward to working with TikTok and China to close the deal." He also emphasized his desire to keep TikTok operational in the U.S., adding, "We do not want TikTok to 'go dark.'
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