In particular, last week President Donald Trump made a huge concession for the popular video app TikTok. He gave the platform a 75-day extension meet the requirements of a law their platform passed in Congress. The law would force TikTok, which is owned by Chinese company ByteDance, to divest its US assets. If it can’t come into compliance, it’s staring down a ban in the United States.
Chief among them, the extension is intended to provide TikTok additional time to work through the rigmarole involved with the law’s confusing requirements. The Trump administration is apparently at the moment in negotiations with a few unspecified groups. The latter two factions have expressed a desire to purchase TikTok’s American business. With 170 million users in the US, the app has become a central focus for the administration as it finalizes a plan to keep TikTok operational in the country.
Initially, TikTok braced to close up shop in the US rather than comply with the new legislative moves. As the app went dark for a few hours before Trump was inaugurated, that illustrates how urgent the situation has become. This last extension indicates the administration is still willing to work something out. This has opened a door for TikTok to continue its business as usual.
Trump emphasized his administration’s commitment to ensuring TikTok remains active in the US, stating, “We do not want TikTok to ‘go dark’. We look forward to working with TikTok and China to close the Deal.” This language is a good sign of the administration’s priority and proactive approach in wanting to work together to come to an agreement.
As negotiations progress, Trump noted that “the Deal requires more work to ensure all necessary approvals are signed.” This important recognition illustrates the very real complications with any possible deal. Stakeholders purposefully endure a complex regulatory gauntlet and other approval processes from all stakeholders such as federal, state, and local authorities.
The extension gives TikTok much-needed breathing room as it continues to navigate these obstacles. These three circumstances could make or break the app. It has potential to make profound impacts on US-China relations, especially in the areas of technology, cyber, and data privacy.