- TikTok’s planned U.S. spinoff deal stalled after China signals it won’t approve it
- The deal involved creating a new U.S.-based company with majority American ownership
- Trump extends ByteDance’s sale deadline by 75 days amid rising trade tensions
- Tariff standoff intensifies, with U.S. duties on Chinese goods now totaling 54%
TikTok Deal in Limbo as U.S.-China Trade Tensions Escalate
A proposed deal to spin off TikTok’s U.S. operations has been put on hold after Chinese authorities privately signaled disapproval in response to President Donald Trump’s latest round of tariffs, according to sources familiar with the matter.
The deal — which had already been finalized in structure earlier this week — would have created a new American-based company to run TikTok in the United States. The new entity was expected to be majority-owned by U.S. investors, with TikTok’s parent company ByteDance retaining a minority stake of less than 20%. Sources say the agreement had received green lights from ByteDance, current investors, new American backers, and the U.S. government.
However, following Trump’s announcement of a 34% hike in tariffs on Chinese imports, which raised the total tariff rate to 54%, China retaliated and reportedly communicated reluctance to approve any deal involving the transfer of ByteDance’s strategic assets. The Chinese government has previously added certain technologies, including recommendation algorithms — core to TikTok — to its export control list.
President Trump, speaking on social media Friday, acknowledged the delay, saying the deal “requires more work to ensure all necessary approvals are signed.” He extended ByteDance’s sale deadline by 75 days, giving the company additional time to reach a resolution. “We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs,” Trump added.
The White House, ByteDance, and the Chinese Embassy in Washington D.C. have not issued official responses to the status of the deal.
TikTok, which currently has over 170 million U.S. users, faces mounting pressure under a 2024 law requiring Chinese firms to divest from U.S. technology platforms or face operational bans. Trump has indicated that he is open to reducing tariffs on China if an agreement over TikTok can be finalized, hinting at the geopolitical leverage the app now represents.
The latest developments underscore how economic nationalism and digital sovereignty continue to complicate U.S.-China relations — with corporate deals now deeply entangled in broader trade and political conflicts.
For latest Business and Finance News subscribe to Globalfinserve, Click here
#TikTok #Trump #Tariffs #ByteDance #USChina #TechPolicy #TradeWar #Finance #Business #USMarkets #CFO #CEO #Investments #Regulation #GlobalTech