TikTok US Business Rights Deal on Hold... "Due to Chinese Government Opposition Over US Tariffs"

The transaction for the U.S. business rights of the Chinese video platform TikTok has been put on hold. The reason for the suspension is reported to be opposition from the Chinese government in response to President Donald Trump's tariff policies.

According to Reuters on the 4th (local time), the deal to separate TikTok's U.S. business rights into a new U.S.-based company has been halted.

TikTok is facing the threat of being banned in the U.S. due to the so-called 'TikTok Ban Act.' This law requires TikTok's parent company, ByteDance, to sell its U.S. business rights to an American company.

The deadline set by the law for the sale is January 19, but President Trump signed an executive order to delay the enforcement of the TikTok Ban Act by 75 days. Since then, TikTok and U.S. investors have effectively concluded negotiations.

The core of the negotiations was that U.S. investors would hold more than half of the shares in the new U.S.-based company, while ByteDance, TikTok's parent company, would hold less than 20% of the shares. The U.S. government is also reported to have agreed to this negotiation outcome.

However, after President Trump's announcement of tariff policies, China decided not to approve the TikTok transaction until negotiations with the U.S. on this issue are completed.

ByteDance stated in a press release, "We are still in discussions with the U.S. government, but no agreement has been reached yet, and there are differences on key issues." It added, "According to Chinese law, all agreements must undergo a review process."

The Chinese Embassy in the U.S. also stated, "China respects and protects the legitimate rights and interests of enterprises. We oppose actions that violate the basic principles of a market economy."

Regarding the Chinese government's refusal to approve, President Trump said on social media, "I hope to continue negotiations with China," and added, "China seems very unhappy about the U.S. reciprocal tariffs."

The Trump administration announced plans to impose a total tariff of 54%, including a 34% reciprocal tariff on Chinese imports. However, President Trump previously mentioned his willingness to lower tariffs on China to facilitate the TikTok sale deal. Along with this, President Trump also stated he would extend the grace period for the enforcement of the TikTok Ban Act.

The grace period for the enforcement of the TikTok Ban Act is scheduled to expire this weekend, but with the transaction on hold, it is intended to grant additional time. The expiration of the additional extension period is expected to be around mid-June.