- The Washington Post reports TikTok may not be sold to an American buyer. The app’s Chinese parent company, ByteDance, may choose to let the platform go dark in the U.S. later this year.
- President Donald Trump granted a 75-day extension last month. It allowed TikTok to reach a sale instead of facing a ban under a bipartisan “sell-or-ban” bill President Joe Biden signed last year.
- The report indicates the Chinese government may be more open to a deal if the Trump administration gives China some concessions on trade.
Full Story
TikTok is legal in the U.S. under a reprieve from President Donald Trump. However, in order to keep the app operational under U.S. law, the U.S. would need to facilitate a deal where TikTok sells its U.S. operations to an American buyer.
Now, a new Washington Post report finds that China may be more inclined to simply run out the clock and let its app go dark for good in the U.S.
The Post spoke with three sources, who agreed to keep the information anonymous to discuss details of the private negotiations.
With less than two months to go before the president’s 75-day reprieve runs out, they say, China is inclined to hold on to prevent the president from notching a win, especially if the U.S. does not make concessions, including lower tariffs.
Due to President Trump’s actions earlier this month, Chinese goods now face 25% tariffs on imports into the U.S.
The sources also say China is skeptical about Trump’s consistency. They worry about a crackdown on China he engaged in during the final year of his first term. In 2020, President Trump suggested he would like to ban TikTok. However, he reversed that policy on the 2024 campaign trail.
The calculus may not have changed much for TikTok, who declined to sell for roughly nine months after President Joe Biden signed a bipartisan bill requiring the company to either sell its app to an American buyer or face a ban. The law forbids ownership of companies like TikTok by companies with ties to known foreign adversaries such as China. ByteDance is based in Beijing.
Many buyers have expressed interest in TikTok. Investors including “Shark Tank” judge Kevin O’Leary and top YouTube star MrBeast have joined bids.
However, the Post says ByteDance may sacrifice its U.S. operations, which are just part of its global business, to avoid opening the door to another competitor.