TikTok has restored its services in the United States after President-elect Donald Trump announced a 90-day extension for the app to secure a US buyer. However, questions remain over whether TikTok’s Chinese parent company, ByteDance, will be able or willing to find a solution to avoid a permanent shutdown.
The Executive Order and Its Implications
In an attempt to prevent the ban, President-elect Trump promised to sign an executive order granting TikTok 90 more days to find a US-based partner. This extension is intended to address national security concerns, and Trump has proposed a joint venture where American owners would take control of 50% of TikTok’s operations. Despite this temporary reprieve, there are doubts within both the US government and among experts regarding the legality and feasibility of the deal.
The proposal has sparked mixed reactions. Some experts warn that a co-ownership model, where ByteDance retains partial control, may not resolve the security issues associated with TikTok’s Chinese ownership. Brock Silvers, managing director at Kaiyuan Capital, stated that “if full China control over TikTok is a security risk, co-control won’t be better.”
While TikTok’s return to US app stores has brought relief to many users, there’s still uncertainty over the app’s long-term future. Congress has expressed concerns about TikTok’s security risks and is pushing for ByteDance to fully divest from the company.
China’s Response and ByteDance’s Strategy
China’s government, which has criticized US actions toward TikTok, could play a pivotal role in the resolution of the dispute. Beijing has previously called a forced sale of TikTok “plundering” and has warned against politicizing business decisions. Chinese experts are cautiously open to Trump’s proposal, though they remain skeptical about the outcome.
ByteDance has yet to make significant progress toward finding a buyer, and it’s unclear whether the company will agree to a sale or divestiture. Chinese officials may resist giving up control of such a valuable asset, especially when Beijing has already voiced strong objections to US intervention.
The involvement of US tech giants like Apple, Google, and Oracle further complicates the situation. These companies could face penalties if they continue to host TikTok or allow it in their app stores without complying with legal mandates. TikTok’s return to US services has not yet been mirrored in the app stores, indicating ongoing tensions in the tech industry over Washington’s influence on Chinese companies.
The Future of TikTok in the US
While Trump’s extension may provide temporary relief, the road ahead for TikTok remains uncertain. The company has indicated it will work with the Trump administration to find a long-term solution that keeps TikTok available in the US. However, unless ByteDance can demonstrate substantial progress in its negotiations or comply with the US government’s national security requirements, TikTok’s future in the US remains precarious.
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