The U.S. government is on the verge of banning TikTok unless a deal concerning its ownership is reached with China. According to U.S. Secretary of Commerce, Howard Lutnick, the app’s future hinges on the Chinese government agreeing to the sale of its key technology, particularly the recommendation algorithm. Without this agreement, TikTok could soon be switched off, marking a significant shift in the U.S.-China relationship and raising concerns for millions of users.
Former President Donald Trump initially aimed to preserve TikTok’s operations in the U.S., promising a resolution to national security concerns. However, as negotiations have stalled, the current administration is losing patience. The burden now falls on Vice President JD Vance, who has been negotiating with the Chinese parent company, ByteDance, for several months without success.
The crux of the issue lies in the Chinese government’s refusal to permit the sale of TikTok’s core technology. Lutnick emphasized that under Trump’s proposed deal, U.S. companies would gain control over TikTok, allowing ByteDance to retain a minority stake while transferring the technology and algorithm to American hands. This arrangement is seen as essential to addressing fears that the Chinese government could access user data or manipulate the platform for influence.
Despite the allegations against ByteDance, company officials have repeatedly dismissed concerns about data security and user manipulation. In January, a member of ByteDance’s board suggested a local control solution that would comply with U.S. laws without necessitating a full sale. However, this proposal received little support from Washington.
Strategically, the impending ban appears to be intertwined with broader trade tensions between the U.S. and China. Observers suggest that Beijing sees TikTok as leverage in negotiations, potentially demanding concessions on tariffs in exchange for approving the sale. Currently, a 90-day ceasefire in trade disputes is in effect, but it is set to expire in August 2023, just one month before the deadline for the TikTok deal.
Failure to reach an agreement not only threatens the app’s availability in the U.S. but could also have broader implications for the already fragile relationship between Washington and Beijing. As uncertainty grows, millions of TikTok users and content creators in the United States are left in limbo. Lutnick made it clear: “If China does not approve the deal, TikTok will be switched off in the U.S. – and this decision is imminent.”
