- TikTok is promised more time for sales, a process requiring significant progress to reach an agreement.
- A 90-day reprieve has started to address national security concerns.
- The extension hinges on ByteDance, TikTok’s Chinese parent, demonstrating progress toward selling a majority U.S. stake.
President-elect Donald Trump plans to delay the ban on TikTok to secure a U.S. backer. Following this pledge, TikTok’s US operations have resumed, and many questions surround the app’s future.
Over the weekend, Trump announced that he would give TikTok 90 days to secure a US backer, a step that can address national security concerns. Trump’s decision can provide an initial reprieve; however, continuing political pressure and legal challenges hinder efforts to reach a lasting solution.
A Joint Venture to Mitigate Security Risks
The solution suggests creating a joint venture allowing American investors to purchase a 50% stake in the app. This proposal raised concerns and drew mixed reactions, and critics have questioned how this partnership is expected to mitigate the security risks of a Chinese-owned platform.
Trump tried to assure the concerned masses; however, the future of this deal is still unclear. Currently, there is noticeable progress toward securing a U.S. buyer, with discussions focusing on TikTok’s Chinese parent company, ByteDance, which maintains control over the app’s core operations.
The success of this deal may seem like a win for TikTok users, but for the app itself, it is not, as it will cede majority control to U.S. stakeholders to avoid a permanent shutdown.
Some Chinese officials expressed concern about this forced sale, and Chinese media continuously called for a free environment where companies can operate across borders while highlighting market principles and non-discriminatory policies.
An Unknown Future Amid Political Tensions
Although this extension provides an additional negotiation opportunity, the legal framework for a potential TikTok sale remains in flux. To close the deal, Trump must show that a “qualifying sale” is underway.
Despite all these efforts, Congress can still reject this extension. Apple and Google, two of the US tech giants, can also face penalties for hosting TikTok-related apps after the ban starts.
This competition is part of the continuing geopolitical tensions, especially as U.S. officials continue targeting Chinese tech companies over national security concerns. Amid these tensions, TikTok is facing high risks not just in the U.S. but also in China, where many companies, including Shein and Temu, rely on U.S. market.
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