U.S. President Donald Trump has extended the deadline for Chinese tech company ByteDance to sell TikTok’s U.S. assets to a non-Chinese buyer, delaying the originally set January 2024 ban by 75 days. The deadline is now mid-June, with Trump explaining that additional work is needed to secure necessary approvals for the deal.
Trump’s announcement comes amid continued trade tensions between the U.S. and China. This week, the U.S. raised tariffs on Chinese goods by 34%, resulting in a retaliatory move from China. Trump has expressed willingness to ease these tariffs to facilitate a deal that could see ByteDance’s TikTok operations in the U.S. sold off, avoiding the app’s shutdown, which has become a significant issue for its 170 million American users.
The deal’s complexity is primarily due to the need for Chinese government approval, which has not been guaranteed. Trump emphasized his hope to resolve the matter and prevent TikTok from being banned, noting the ongoing negotiations with potential buyers, although these parties have yet to be publicly identified.
A bipartisan 2024 law, signed by President Joe Biden, mandates that TikTok must divest its U.S. operations unless ByteDance completes a sale by mid-January. Despite this, Trump has delayed enforcement since taking office in January, opting not to act on the law immediately.
In the latest developments, major investors such as Jeff Yass’s Susquehanna International Group and Bill Ford’s General Atlantic are leading discussions with the White House on a possible sale plan, with Walmart also considering participation in the deal. The plan involves reducing Chinese ownership in TikTok’s U.S. business to meet the legal threshold.
Source: Swifteradio.com
