TikTok, the popular video-sharing platform, has resumed its services in the United States following an announcement by President Donald Trump, granting a 90-day extension to its Chinese parent company, ByteDance, to find a US-based buyer.
This decision offers a temporary lifeline to the app, which faced a potential ban due to national security concerns. However, despite this reprieve, uncertainties linger over whether a deal can be finalised in time and what it might mean for the app’s future in the United States.
President Trump’s executive order proposed that American investors acquire a significant stake in TikTok’s US operations, aiming to defuse concerns over data privacy and security.
The order also emphasised that ByteDance must meet specific conditions for the extension to remain valid, including showing substantial progress toward a divestiture deal.
Trump’s plan envisions a joint venture in which American entities would own at least 50% of the company. However, this approach has faced mixed reactions.
Trump’s willingness to grant the extension was met with praise from TikTok’s vast user base, but Republican leaders and security experts expressed ongoing scepticism.
Some argue that partial US ownership may not fully address national security risks posed by ByteDance’s ties to the Chinese government. Brock Silvers, managing director at Kaiyuan Capital, voiced doubts, stating that a joint ownership model may not adequately mitigate security concerns.
He stressed that TikTok’s operations in the US might only be secure under majority American control.
Despite the resumption of services, the legal complexities surrounding the ban and its enforcement have yet to be fully resolved. Apple and Google have not reinstated TikTok in their iOS and Android app stores, leaving users in a precarious position.
Jasmine Enberg, a vice president and principal analyst at Emarketer, highlighted the challenges, noting that companies like Apple, Google, and Oracle face potential penalties for non-compliance with US policies.
The removal of related apps like CapCut, Lemon8, and Marvel Snap further underscores the uncertainty.
This is not the first time TikTok has been at the centre of US-China tensions. During his first term, Trump attempted to ban WeChat, a messaging app owned by Tencent Holdings, citing similar national security concerns.
ByteDance previously faced pressure to sell TikTok’s US operations in 2020, pursuing a $60 billion valuation and seeking a deal involving Oracle and Walmart. However, Beijing’s restrictions on the transfer of TikTok’s valuable recommendation algorithm ultimately derailed the negotiations.
The question of Chinese ownership remains a contentious issue. Beijing has consistently criticised the US government’s actions, describing them as politically motivated and akin to economic “plundering.”
Cui Hongjian, a former Chinese diplomat and academic, suggested that while Trump’s current proposal indicates a willingness to negotiate, China will remain cautious and selective about any potential deal.
Meanwhile, the Chinese Foreign Ministry reiterated its call for the US to adopt fair and market-driven policies.
Adding to the complexity, incoming National Security Adviser Mike Waltz has hinted at the possibility of TikTok continuing under Chinese ownership, provided strict safeguards are put in place.
However, geopolitical tensions remain high, particularly following the US Department of Defense’s recent decision to blacklist Tencent. This raises broader concerns about how the US plans to handle Chinese-owned companies like Shein and Temu, which heavily rely on the American market for growth.
The future of TikTok in the US remains uncertain. Without clear evidence of significant progress on a sale or other solution, ByteDance may struggle to meet the conditions for the extension.
Republican leaders, including House Speaker Mike Johnson, have made it clear that they expect a complete divestiture of TikTok from Chinese ownership.
Failure to achieve this could leave major tech companies like Apple and Google in legal limbo, potentially facing fines for supporting the app on their platforms.
ByteDance has long resisted the idea of selling TikTok, viewing the app as a core part of its business strategy. Yet, with the ban looming and geopolitical tensions escalating, the company may have to make difficult decisions to ensure TikTok’s survival in the US market.
The stakes are high, not only for TikTok’s future but also for the broader dynamics of US-China relations in the tech sector.
