Trump Extends TikTok Deadline in the U.S.

In a recent development, former President Donald Trump has granted TikTok a further extension in the United States. The popular short-video application, which faced the threat of being banned due to a legislative mandate, will remain operational for an additional 75 days. This decision comes as the original deadline for TikTok's parent company, ByteDance, to divest its U.S. operations was set for January 19. Upon taking office earlier this year, Trump had already allowed a grace period of 75 days that is now set to expire on April 5.

Concerns have been raised by U.S. lawmakers and experts regarding the potential for the Chinese government to utilize TikTok for espionage or to manipulate public opinion. However, TikTok has consistently denied these allegations. Trump has hinted at the possibility of further extensions if necessary, despite the lack of legal grounds for such actions. The initial grace period was not clearly outlined in the legislation, which only permitted a 90-day delay under circumstances of ongoing negotiations.

Amidst growing speculation, both Trump and Vice President JD Vance had suggested that a resolution could be reached before the April deadline. However, Trump later indicated on his social media platform that more work was needed to finalize the agreement and secure necessary approvals.

In terms of negotiations, Trump has previously suggested that he might consider reducing tariffs on China in exchange for Beijing's cooperation on the TikTok sale. He acknowledged that China might have some influence over the transaction. Trump emphasized that any concession on tariffs would hold a greater value than the video-sharing platform itself, stating that China was not pleased with the existing tariffs.

Reports have indicated that Trump's plan may involve the establishment of a new entity named 'TikTok America' to manage U.S. operations. Major tech firm Oracle, alongside financial groups like Blackstone and Andreessen Horowitz, are reportedly in contention for leadership roles in this new company. According to insider information, these investors could acquire approximately 50% of the American TikTok operations, while existing international backers would retain about 30%, leaving around 20% with ByteDance, thereby satisfying legislative requirements.

However, the continuation of TikTok's existing algorithm, which determines content visibility, remains a contentious issue. It has been reported that TikTok America may obtain a license to use the current algorithm, a move that has drawn criticism from opponents who fear it could enable the Chinese government to influence U.S. public sentiment. TikTok and ByteDance have repeatedly denied such claims.

Legislation stipulates that neither the Chinese government nor ByteDance can maintain control over the algorithm. There have been ongoing assertions from TikTok that selling only the U.S. segment of the platform would lead to fragmentation. Trump has suggested that various pathways to acquire TikTok exist, with a commitment to finding the most beneficial option for the U.S. The stance of China and ByteDance regarding the proposed sale remains unclear.

Trump's earlier attempts during his presidency to enforce a TikTok sale through threats of a ban were halted by U.S. courts. Current laws enacted under President Joe Biden provide a robust legal framework for a potential ban on TikTok in the U.S. Despite this, Trump seems to have shifted his perspective and is now advocating for the app's continued presence.