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 Faces US Ban Deadline as Users Brace for Fallout

A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo
A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo
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TikTok Faces US Ban Deadline as Users Brace for Fallout

A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo
A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo

TikTok buzzed with nervous anticipation across the US on Saturday as a looming federal ban threatened to sever access to the Chinese-owned app that has captivated nearly half of all Americans, powered small businesses and shaped online culture.

The company said late Friday that it will go dark in the United States on Sunday unless President Joe Biden's administration provides assurances to companies like Apple and Google that they will not face enforcement actions when a ban takes effect.

The ban would be enacted under a law signed by President Joe Biden in April and mark the first US shutdown of a major social media app -- with TikTok boasting about 170 million domestic users and an estimated $20 billion in 2025 revenue.

The platform has until Sunday to cut ties with its China-based parent ByteDance or shut down its US operation to resolve concerns it posed a threat to national security.

Supreme Court justices upheld the ban on Friday in a unanimous decision and a White House statement suggested Biden would not take any action to save TikTok before the deadline.

Without a decision by Biden to formally invoke a 90-day delay in the deadline, companies providing services to TikTok or hosting the app could face legal liability. It is not clear if TikTok's business partners, including Apple, Alphabet's Google and Oracle, will continue doing business with it before Trump is inaugurated on Monday, according to Reuters.

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

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 that TikTok could make a comeback under incoming US President Donald Trump, who wants to pursue a "political resolution" of the issue and had last month urged the Supreme Court to pause implementation of the ban.

Trump said on Friday the decision on the future of the TikTok app will be up to him, but he did not provide any detail about what steps he would take. Media reports have said that he was considering an executive order that would suspend the enforcement of the TikTok sale-or-ban law for 60 to 90 days.

TikTok CEO Shou Zi Chew plans to attend the US presidential inauguration on Jan. 20 and sit among high-profile guests invited by Trump, 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.

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.