TikTok Faces US Ban Amid Ownership Deadline, National Security Concerns

TikTok, with over 170 million American users, is under threat of a US ban due to a law requiring its Chinese owner, ByteDance, to sell the platform to a non-Chinese entity.

The deadline for this sale is April 5, with US President Donald Trump on Thursday stating that his administration is “very close” to a deal involving “multiple” investors.

The law, motivated by national security fears and concerns that TikTok is controlled by the Chinese government, has been a major point of contention. Trump has repeatedly downplayed the risks, expressing confidence that a buyer will be found for TikTok’s US business.

In a recent statement, Trump mentioned the possibility of TikTok being part of a broader deal with China to ease tariffs. “As long as they are giving us something that is good. For instance, with TikTok,” he said. “We have a situation with TikTok where China will probably say we’ll approve a deal but will you do something on the tariffs. The tariffs give us great power to negotiate.”

The most likely solution involves existing US investors in ByteDance rolling over their stakes into a new independent global TikTok company, with additional US investors, such as Oracle and Blackstone, joining to reduce Chinese ownership.

However, uncertainty remains regarding TikTok’s valuable algorithm, with reports suggesting that the new company may license it from ByteDance. This arrangement could go against the spirit of the law, which aims to prevent TikTok’s algorithm from being “weaponized” by the Chinese government.

Other proposals, including bids from Amazon, “The People’s Bid for TikTok,” and artificial intelligence startup Perplexity, are also on the table. Trump’s stance on TikTok has shifted, with the president now seeing the platform as a reason for increased support from young voters.

PUNCH