Recent developments indicate that negotiations between the United States and ByteDance, the parent company of TikTok, are at a standstill. While discussions are ongoing, it seems that significant hurdles remain, primarily due to demands for “larger concessions” from the U.S. government, particularly related to trade policies.
Former President Trump, who initiated the push to ban TikTok due to national security concerns, left office without enforcing a shutdown. Following this, Congress enacted legislation mandating ByteDance to divest TikTok within 90 days or face a ban, restricting U.S. users from downloading or updating the app. This deadline coincided with Trump’s inauguration weekend, leading to temporary blocks for U.S. users, which were lifted swiftly after Trump engaged with TikTok representatives.
Despite Trump’s assurances regarding a potential extension for ByteDance, the app remains unavailable on major U.S. app stores, including those operated by Apple and Google, which could face fines for listing TikTok. Analysts suggest that ByteDance is not under significant pressure to sell, given the company’s continued profitability. The value of TikTok’s unique algorithm could outweigh any prospective sale price, complicating the negotiations further.
As speculation grows about the future of TikTok in the U.S., key questions remain: Will U.S. officials make any concessions to salvage the deal? Will ByteDance receive approval from the Chinese government for any sale? The deadline for a potential ban looms, with the situation evolving rapidly.
