According to US media, China may reject the agreement to separate assets related to the social networking platform TikTok in the US due to President Donald Trump’s new tariffs.
The deal is expected to split TikTok in the US into a new company, majority owned and operated by US investors, with ByteDance, TikTok’s Chinese parent company, holding a market share of less than 20%. The deal is currently subject to approval by existing investors, new investors, the US government and ByteDance, sources said.
TikTok deal on hold after Trump’s new tariffs. (Photo: Reuters)
The biggest hurdle to a deal for TikTok’s US operations is Chinese government approval. China has not made a public commitment to allow a TikTok sale, and Trump’s comments signaled renewed Chinese opposition.
Regarding the information that China may reject the deal, both the White House and the Chinese Embassy in Washington have not commented.
Previously, on April 4, the White House owner decided to extend 75 days to complete the agreement to separate TikTok’s assets in the US.
“We need to do more to make sure the deal gets passed and signed. We look forward to continuing to work in good faith with China, who I know are not happy with our reciprocal tariffs,” Trump wrote on the social network Truth.
China now faces a 54% tariff on goods imported into the US after Mr Trump announced a 34% increase this week. The White House boss said he was willing to reduce tariffs on China to reach a deal with ByteDance.
Additionally, the US president said that his administration has been in contact with four different groups to develop a potential TikTok deal. However, he did not specify which groups.
Currently, several parties have shown interest in this deal.
Artificial intelligence company Perplexity AI has proposed merging its US operations with TikTok. A consortium led by billionaire Frank McCourt has offered to pay $20 billion in cash for TikTok, with plans to revamp the app with blockchain technology to give users more control over their data.
Another group led by Roblox’s CEO offered more than $30 billion to buy TikTok.
