TikTok's Fate Hangs in the Balance as Trump Considers Reprieve Amid China's Deal Signals
TikTok, the popular short video service used by 170 million Americans, is eagerly awaiting an executive order that could grant it more time to strike a deal after President Donald Trump returned to power. China has indicated its willingness to engage in a transaction to keep the app operational in the U.S. market.

Over the weekend, TikTok was briefly taken offline for U.S. users as a law requiring its sale by Chinese owner ByteDance on national security grounds came into effect. Concerns were raised by U.S. officials about the potential misuse of Americans' data under ByteDance's ownership.
Following the restoration of access on Sunday, TikTok expressed gratitude to Trump for providing assurances that the app and its business partners would not face significant fines to continue operations. Despite being operational on Monday, TikTok remained unavailable for download on Apple and Google app stores, possibly awaiting clearer legal assurances.
During a rally on Sunday, Trump emphasised the necessity to save TikTok, stating, "Frankly, we have no choice. We have to save it." He mentioned plans for a joint venture to restore the app, which is used by half of Americans.
TikTok CEO Shou Zi Chew was present at the inauguration events, including a service at St. John's Episcopal Church in Washington. Notable tech executives like Jeff Bezos, Mark Zuckerberg, and Sundar Pichai also attended. The company even sponsored an inauguration party hosted by conservative youth and dating groups.
China's foreign ministry, when asked about TikTok's restoration and Trump's interest in a deal, emphasised that companies should independently decide on their operations and deals. The ministry spokesperson highlighted TikTok's popularity among American users and urged the U.S. to provide a fair and non-discriminatory business environment.
The debate surrounding TikTok occurs amidst strained U.S.-China relations. Trump's decision to save TikTok marks a shift from his previous stance of wanting to ban the app due to data-sharing concerns. In 2020, he signed an executive order giving ByteDance 90 days to sell TikTok, eventually approving a partnership deal involving Oracle and Walmart.
Elon Musk, a close advisor to Trump, expressed support for TikTok talks to secure concessions in China for American social media services, including his platform X. He highlighted the need for a balanced approach, where American platforms can operate in China as well.
While some Republican senators support efforts to save TikTok, others like Tom Cotton and Pete Ricketts emphasise the importance of ByteDance agreeing to a sale that complies with divestiture requirements. The U.S. has never banned a major social media platform, but the law grants the incoming Trump administration broad authority to address Chinese-owned apps.
TikTok awaits an executive order for a potential deal extension after Trump's return to power.
China signals openness to a transaction to keep TikTok operational in the U.S. market.
TikTok briefly taken offline before being restored, pending clearer legal assurances.
Source: REUTERS