Almost to the finish line, China suddenly hits the brakes on TikTok sales talks.
The reason? Who else but Donald Trump!
The US President had just announced a 34% tariff increase on Chinese imports, bringing the total to 54%.
Shortly after, the negotiations that were almost sealed went silent – China ‘archived’ the agreement and ‘blocked’ progress from continuing.
The agreement was supposed to see TikTok’s US operations separated into a new company owned by US investors, with ByteDance (the original Chinese owner) retaining just under 20%.
Everything was approved by existing investors, new investors, ByteDance and the US government.
But in reality, the ultimate approval still lies in Beijing’s hands. And when the tariffs were announced, China was quick to express diplomatic objections.
Following that, Trump decided to extend the TikTok sales deadline for another 75 days, to mid-June.
In a statement on social media, he stressed that he doesn't want TikTok to "just disappear," while acknowledging that the tariff action could be a source of renewed tension with China.
With TikTok's fate hanging in the balance, the question now is — who will give in first? Trump, investors, or Beijing?
