The deal to sell TikTok’s American assets has been suspended due to China’s stance after the introduction of new tariffs by US President Donald Trump. About this informs The Associated Press.
On April 4, Trump extended the deadline given to ByteDance for another 75 days to complete the deal with American investors. If an agreement is not reached, the TikTok application may be banned in the United States.
The draft agreement provided for the creation of a separate company that would combine TikTok’s American assets. Investors from the US were to become the majority shareholders, while ByteDance would own less than 20% of the shares. ByteDance officials contacted the White House to say Beijing would not agree to such a deal without first negotiating tariffs and trade terms.
Trump made his position public on social networks:
“My administration has made tremendous progress on the TikTok deal. The deal needs further work to ensure all necessary approvals are signed, so I am signing an executive order to extend the deadline for another 75 days. We look forward to working with China to conclude the deal.”.
At the same time, China has not officially made a commitment to allow sales. Beijing criticized the new tariffs, saying that such actions by the US contradict market principles.
In a comment, ByteDance confirmed that the company is in talks with the US government, stressing:
“A deal has not been struck. There are key issues that need to be resolved. Any deal is subject to approval under Chinese law.”
We will remind that on March 31, Trump emphasized that the agreement regarding TikTok should be concluded by April 5.
