TikTok Resumes Services Amid Uncertainty Over Future

TikTok Resumes Services Amid Uncertainty Over Future

TikTok resumes services in the United States following Donald Trump’s pledge to delay the enforcement of a ban. This decision came after the President-elect announced he would grant an additional 90 days for the platform to secure a US investor and address national security concerns. The extension raises the question of whether a legal framework can support such a delay, given the impending ban that was set to take effect on Sunday.

Trump’s Proposal for a Joint Venture

Trump’s proposal involves a joint venture where American investors would acquire a 50% stake in TikTok. While the announcement received praise from users, it faces criticism from Republican party members who view the app as a continuing national security threat. Critics like Brock Silvers from Kaiyuan Capital argue that a co-control model with China would not solve security issues.

Potential Impact on Chinese Companies

The response from Beijing and ByteDance will influence not only TikTok but also other Chinese companies such as Temu and Alibaba, which rely heavily on US operations. Chinese officials have explored various strategies, including a potential deal with buyers like Elon Musk. However, there is skepticism over whether China’s government would approve the sale of such a valuable asset, with critics labeling the forced sale of TikTok as “plundering.”

China’s Stance on Market Principles

China’s Foreign Ministry has reiterated its opposition to the forced sale of TikTok, advocating for market principles to guide the platform’s fate. Spokeswoman Mao Ning called on the US to create a fair and non-discriminatory environment for global companies. Despite these statements, the legal hurdles around TikTok’s potential sale remain significant.


Vivek Ramaswamy Considers U.S. Senate Candidacy

Vivek Ramaswamy Considers U.S. Senate Candidacy

Vivek Ramaswamy, a biotech billionaire, is leading government cost-cutting with Elon Musk. Donald Trump nominated him for the Senate…


Legal Challenges to Trump’s Plan

Under current laws, ByteDance must sell its US operations to an approved buyer. While Trump can extend the deadline for 90 days, there is uncertainty whether this move will satisfy legal requirements. The president must certify that a “qualified divestiture” is underway and that agreements are in place to finalize the deal within the new timeframe.

Lack of Progress in Negotiations

Although some buyers expressed interest in acquiring TikTok’s US operations, no clear frontrunner emerged. ByteDance resisted selling the app for nearly a year, and no signs of substantial progress toward a deal appeared. The uncertainty leaves open the possibility of a permanent shutdown if parties do not reach an agreement.

Republican Opposition and Congressional Hurdles

Republican leaders, including Mike Johnson and Tom Cotton, stress ByteDance must fully divest TikTok. They argue the extension is legally questionable. Without evidence of significant progress, Trump’s executive order could face challenges in Congress. If Congress rejects the extension, major tech companies could face legal consequences.

Potential Consequences for Tech Giants

Tech giants like Apple, Google, and Oracle may face penalties for supporting TikTok if the app isn’t divested. The iOS store still hasn’t restored TikTok, and several related apps were removed. This situation highlights the challenges companies like Apple and Google face. They must navigate potential non-compliance with government orders.

A Familiar Scenario: Trump’s Previous Efforts

Trump’s efforts to handle TikTok mirror his 2020 attempt to ban Tencent’s WeChat. Back then, ByteDance attempted selling TikTok’s stake to Oracle and Walmart. However, the deal collapsed after ByteDance challenged Trump’s order in court. The outcome of this new proposal remains unclear, potentially facing legal battles.

The decision to delay TikTok’s U.S. ban highlights political maneuvering. It questions if legal structures can sustain such extensions and if national security TikTok resumes services concerns can be sufficiently addressed within the new timeline, according to wsj digital subscription.


Call Now Button