TikTok Awaits Trump Reprieve as China Signals Open to Deal

A 3D-printed miniature model of US President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. (Reuters)
A 3D-printed miniature model of US President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. (Reuters)
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TikTok Awaits Trump Reprieve as China Signals Open to Deal

A 3D-printed miniature model of US President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. (Reuters)
A 3D-printed miniature model of US President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. (Reuters)

President-elect Donald Trump is expected to grant TikTok more time to strike a deal after he returns to power on Monday as China has signaled it would be open to a deal to keep TikTok in the US market.

The short video service used by 170 million Americans was briefly taken offline for US users on Saturday, hours before a law that said it must be sold by its Chinese owner ByteDance on national security grounds took effect on Sunday.

US officials had said that under ByteDance, there was a risk of Americans' data being misused.

TikTok restored access on Sunday and thanked Trump for providing assurances to TikTok and its business partners that they would not face hefty fines to keep the app running.

The app and website were operational on Monday, but TikTok was still not available for download in the Apple and Google app stores, suggesting the two companies were waiting for clearer legal assurances.

"Frankly, we have no choice. We have to save it," Trump said at a rally on Sunday ahead of his inauguration, adding that the US will seek a joint venture to restore the app used by half of Americans.

TikTok CEO Shou Zi Chew attended a service at St. John's Episcopal Church in Washington with Trump on Monday. Chew was joined by several Big Tech chief executives including Amazon.com founder Jeff Bezos, Meta CEO Mark Zuckerberg and Google CEO Sundar Pichai.

The company also sponsored an inauguration party on Sunday, hosted by the organizers of conservative youth and dating groups. Trump had earlier said he will issue an executive order to give TikTok a reprieve from the ban after he takes office, a promise TikTok cited in a notice posted to users on the app.

That comes as China indicated for the first time it would be open to a transaction keeping TikTok operating in the US When asked about the app's restoration and Trump's desire for a deal, China's foreign ministry told a regular news briefing on Monday that it believed companies should "decide independently" about their operations and deals.

"TikTok has operated in the US for many years and is deeply loved by American users," ministry spokesperson Mao Ning said. "We hope that the US can earnestly listen to the voice of reason and provide an open, fair, just and non-discriminatory business environment for firms operating there."

'SAVING TIKTOK'

The debate over TikTok comes at a tense moment in US-China relations. Trump has said he intends to place tariffs on China but has also indicated he hopes to have more direct contact with China's leader.

Trump saving TikTok represents a reversal in stance from his first term in office. In 2020, he aimed to ban the app over concerns the company was sharing Americans' personal info with the Chinese government. More recently, Trump has said he has "a warm spot in my heart for TikTok," crediting the app with helping him win over young voters in the 2024 presidential election.

In August 2020, Trump signed an executive order giving ByteDance 90 days to sell TikTok but then blessed a deal structured as a partnership rather than a divestment that would have included both Oracle and Walmart taking stakes in the new company.

Not everyone in Trump's Republican Party agreed with efforts to get around the law and "Save TikTok".

Republican senators Tom Cotton and Pete Ricketts said in a joint statement: "Now that the law has taken effect, there is no legal basis for any kind of 'extension' of its effective date. For TikTok to come back online in the future, ByteDance must agree to a sale that satisfies the law's qualified-divestiture requirements by severing all ties between TikTok and Communist China."

The US has never banned a major social media platform. The law passed overwhelmingly by Congress gives the incoming Trump administration sweeping authority to ban or seek the sale of other Chinese-owned apps.



TikTok Goes Dark for US Users, Company Pins Hope on Trump

A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)
A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)
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TikTok Goes Dark for US Users, Company Pins Hope on Trump

A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)
A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)

TikTok stopped working in the United States late on Saturday and disappeared from Apple and Google app stores ahead of a law that takes effect Sunday requiring the shutdown of the app used by 170 million Americans.

President-elect Donald Trump said earlier in the day he would "most likely" give TikTok a 90-day reprieve from the ban after he takes office on Monday, a promise TikTok cited in a notice posted to users on the app.

TikTok, which is owned by China's ByteDance, told users attempting to use the app around 10:45 p.m. ET (0345 GMT): "A law banning TikTok has been enacted in the US. Unfortunately, that means you can't use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned."

Other apps owned by ByteDance, including video editing app Capcut and lifestyle social app Lemon8, were also offline and unavailable in US app stores as of late Saturday.

"The 90-day extension is something that will be most likely done, because it's appropriate," Trump told NBC. "If I decide to do that, I'll probably announce it on Monday."

It was not clear if any US users could still access the app, but it was no longer working for many users and people seeking to access it through a web application were met with the same message that TikTok was no longer working.

TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, warned on Friday it would go dark in the US on Sunday unless President Joe Biden's administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect.

Under a law passed last year and upheld on Friday by a unanimous Supreme Court, the platform has until Sunday to cut ties with its China-based parent or shut down its US operation to resolve concerns it poses a threat to national security.

The White House reiterated on Saturday that it was up to the incoming administration to take action.

"We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday," press secretary Karine Jean-Pierre said in a statement.

TikTok did not respond to a request for comment on the new White House statement.

The Chinese embassy in Washington on Friday accused the US of using unfair state power to suppress TikTok. "China will take all necessary measures to resolutely safeguard its legitimate rights and interests," a spokesperson said.

USERS MOVE TO ALTERNATIVES

Uncertainty over the app's future had sent users - mostly younger people - scrambling to alternatives including China-based RedNote. Rivals Meta and Snap had also seen their share prices rise this month ahead of the ban, as investors bet on an influx of users and advertising dollars.

"This is my new home now," wrote one user in a RedNote post, tagged with the words "tiktokrefugee" and "sad".

Minutes after TikTok's US shutdown, other users took to X, formerly called Twitter.

"I didn’t really think that they would cut off TikTok. Now I’m sad and I miss the friends I made there. Hoping it all comes back in just a few days," wrote @RavenclawJedi.

NordVPN, a popular virtual private network, or VPN, allowing users to access the internet from servers around the world, said it was "experiencing temporary technical difficulties".

Web searches for "VPN" spiked in the minutes after US users lost access to TikTok, according to Google Trends.

Users on Instagram fretted about whether they would still receive merchandise they had bought on TikTok Shop, the video platform's e-commerce arm.

Marketing firms reliant on TikTok have rushed to prepare contingency plans this week in what one executive described as a "hair on fire" moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs TikTok could make a comeback under Trump, who has said he wants to pursue a "political resolution" of the issue and last month urged the Supreme Court to pause implementation of the ban.

TikTok CEO Shou Zi Chew plans to attend the US presidential inauguration and attend a rally with Trump on Sunday, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok's US operations to billionaire and Trump ally Elon Musk, though the company has denied that.

US search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok US, a source familiar with the company's plans told Reuters. Perplexity would merge with TikTok US and create a new entity by combining the merged company with other partners, the person added.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the US.