TikTok's deadline for a potential sale to U.S. companies has been extended again, suspending the possibility of a ban as negotiations continue to stretch out.
In a tense standoff, TikTok's parent company, ByteDance, faces a looming deadline to transfer the social media service to a US-based company, or risk being essentially off limits in the US. The deadline, set for mid-January 2025, was established under a law passed in 2024.
The negotiations surrounding TikTok's future have been complex and unpredictable, with potential for further extensions. The latest development came on Monday, when Treasury Secretary Janet Yellen reportedly announced a preliminary deal on TikTok's commercial terms between the US and Chinese governments.
The parties involved in these discussions include the United States government, China, ByteDance, a US software company Oracle, and private parties agreeing on commercial terms. Key figures such as Donald Trump, Chinese President Xi Jinping, and potentially Lachlan Murdoch have been mentioned in connection with the deal discussions.
However, details of the deal have yet to be finalized and could be subject to change. One proposed plan involves US users moving to a new app that TikTok is testing, which would recreate content-recommendation algorithms for the app.
The Trump administration would likely demand US-based storage of TikTok data, independent oversight, and insulation from Chinese legal and political demands. China, on the other hand, might find ways to maintain some control over TikTok by keeping secret doors and trapdoors open for future intervention, if needed.
Tariffs and the Nvidia claims have added complexity to the negotiations, with a new ruling against US-based Nvidia claiming it has violated anti-monopoly laws in China. This complicates the already intricate negotiations.
The White House has issued an executive order titled 'Further Extending the TikTok Enforcement Ban', setting a new deadline of Dec. 16 for TikTok. Until this date, the Justice Department is directed not to enforce a law that could have shut down TikTok in the US.
If a deal is reached, the platform's future could involve ongoing negotiations for several years. Star Kashman, founder of Cyber Law Firm, expressed skepticism about a deal being completed this week. Usha Haley, professor of management at Wichita State University, stated that the Chinese view the signing of a deal as the beginning of negotiations, not the end.
Neither TikTok nor the Treasury Department responded to requests for comment. Despite the uncertainty, one thing is clear: the fate of TikTok remains uncertain, and the world watches as the negotiations unfold.
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