Hong Kong
CNN
—
For many of TikTok’s 170 million users in the United States, President Donald Trump’s move to delay a legal ban on the popular social media platform was a cause for celebration.
However, the reception was less positive in China, where TikTok’s parent company is based, largely due to the possibility that President Trump would demand that the company relinquish 50% of its stake to avoid a shutdown. This is because he suggested that there is a possibility that there will be, and that tariffs on Chinese products may depend on the wishes of the Chinese government. Approve potential future transactions.
When asked about President Trump’s vision for the future of TikTok, China’s Ministry of Foreign Affairs said that “enterprise operations and acquisitions” should be “determined by the company” and done in accordance with Chinese law.
Spokesman Guo Jiakun said on Tuesday that the United States should “listen seriously to the voice of reason” and “provide an open, fair, just and non-discriminatory business environment” for companies from all countries.
Hours after the inauguration on Monday, President Trump issued an executive order delaying implementation of the controversial law for 75 days. The law requires TikTok to be banned in the United States unless it is sold to buyers in the United States or its allies.
The executive action followed President Trump’s promise to delay implementation on Sunday. TikTok said the guarantee helped it get back online after going dark for more than 12 hours over the weekend.
The delay will help the Trump administration “determine the appropriate path forward in an orderly manner that protects national security while avoiding a sudden shutdown of communications platforms used by millions of Americans.” says the order.
President Trump has repeatedly suggested in recent days that a U.S. buyer might be willing to buy half of the company and operate it as a 50-50 joint venture with its current Chinese owner, ByteDance.
A joint venture involving a U.S. company that owns 50% of TikTok would ease the provisions of the controversial law, but it would require U.S. lawmakers or Americans to decide on national security concerns. It’s unclear whether TikTok, which denies it poses any risk, will accept the bill.
Trump’s proposal was met with disdain on Chinese social media, where TikTok’s fate was seen as one of many U.S. efforts to thwart Beijing’s technological prowess.
Tens of millions of users on the social media platform Weibo flocked to hashtags related to the possibility of 50/50 ownership, with many decrying the US government’s “robbery”.
“In that case, Apple and Tesla should also transfer 50% of their stock to Chinese companies,” said one comment, which received thousands of likes.
“In that case, we want 50% control from Nvidia!” said another commenter, referring to the US chipmaker.
Another comment referenced TikTok’s parent company and said, “China will not allow ByteDance to bow down.” “Going from 100% to 50% does not change the nature of robbery,” the comment added.
Media giant ByteDance does not operate TikTok in China, but its sister app Douyin is popular in the country.
Meanwhile, an editorial in the state-run nationalist tabloid Global Times on Tuesday examined the US’ handling of the ban and concluded that “the trap some Americans set on TikTok has instead ensnared them.”
The editorial said, “The political manipulation of overextended security concepts against TikTok has not only caused a swing in sentiment among the American public, but has also caused ‘deep personal distress’ to some of those who make a living from TikTok.” brought about.”
TikTok and fees
Despite the uncertainty surrounding TikTok’s fate, both the U.S. and China appear interested in dialogue with the new administration in place.
In a phone call with President Trump on Friday, Chinese President Xi Jinping called for a “new starting point” in U.S.-China relations and emphasized the two countries’ “extensive common interests.” President Trump noted that the call also included a discussion about TikTok.
Mr. Xi also sent Chinese Vice President Han Zheng to President Trump’s inauguration, the most senior official the Chinese government has ever sent to an American president’s inauguration.
President Trump’s executive order on TikTok comes as the newly sworn president negotiates with the Chinese government despite campaigning on a tough stance on the country, the United States’ main geopolitical rival. It’s one of many signals of readiness.
President Trump also refrained from imposing tariffs on Chinese goods on Monday, which observers suggested could be on the agenda for the first day. President Trump has threatened to impose tariffs of more than 60% on Chinese imports to the United States during his election campaign, and Beijing is bracing for increased economic competition with the United States.
Asked about these tariffs on Monday, President Trump said the first tariffs he imposed as president are still in effect. He said tariffs on Mexican and Canadian products could go into effect on February 1, but did not give a deadline for imposing additional duties.
But Trump has also hinted that tariffs may be tied to TikTok’s fate, raising questions about what tough negotiations the president has in mind in the coming months.
In remarks from the Oval Office on Monday, President Trump said he could impose tariffs of up to 100% on China if Beijing does not approve future agreements.
“If we wanted to make a deal with TikTok and it was a good deal and China didn’t approve of it…we would end up imposing tariffs on China, so maybe China would I think I would approve,” he said suggestively. This wasn’t the only approach he could take.
The Chinese government has previously suggested it has the legal authority to block any transactions related to TikTok, saying any such sale or sale would involve “exporting technology” and hinting at a possible sale of the app’s own algorithms. It was revealed that he was doing so.
Trump ally and Tesla CEO Elon Musk also entered the fray over the future of TikTok, hinting at the “need for change” in comments on his social media platform X on Sunday. I joined. Chinese authorities are considering the option of selling at least part of the U.S. version of the app to Musk’s X, according to Bloomberg and the Wall Street Journal.
Musk pointed out how X is not available in China. Most major US-owned tech platforms are blocked in the country as the Chinese government tightly controls speech and information under the so-called Great Firewall.
“I have long opposed banning TikTok because it violates free speech,” Musk wrote. “However, the current situation where TikTok is allowed to operate in the United States but X is not allowed to operate in China is unbalanced. Something needs to change.”
