China has halted a proposed deal to sell TikTok’s US operations to American investors, in response to President Trump’s decision to significantly raise tariffs on Chinese imports, according to sources familiar with the negotiations.
The deal’s structure, which was largely finalized by Wednesday, as per one source, would have separated TikTok’s US operations into a new American-based company, owned and operated by a majority of US investors. ByteDance would have held a minority stake of less than 20%.
The source indicated that the deal had received approval from existing investors, new investors, ByteDance, and the US government.
Neither ByteDance nor the White House immediately responded to requests for comment. The Chinese Embassy in Washington DC also did not immediately reply to a request for comment.
President Donald Trump on Friday extended by 75 days a deadline for the Chinese technology firm ByteDance to divest TikTok’s US assets to a non-Chinese buyer or face a ban, which was scheduled to take effect in January under a 2024 law.
“The deal requires more work to ensure all necessary approvals are signed,” Trump stated on social media, explaining the extension of the January deadline that was originally set to expire on Saturday. “We hope to continue working in good faith with China, who I understand is not very happy about our reciprocal tariffs.”
China now faces a 54% tariff on goods imported into the United States after Trump announced a 34% increase this week, prompting China to retaliate on Friday. Trump has expressed willingness to reduce tariffs on China to finalize a deal with ByteDance to sell the app, which is used by 170 million Americans.
