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China may let TikTok strike a deal to continue operating in America. This move is a departure from its earlier tough stance, as President Donald Trump warned that he could impose tariffs on Chinese imports of up to 100%.
Trump signed an executive order Monday delaying TikTok’s ban for 75 days. During the signing, he suggested the U.S. government could take a 50% stake in TikTok’s American operations. Trump argues that “if we create that value, why aren’t we entitled to like half?”
Beijing previously threatened to block any forced sale of TikTok‘s U.S. operations. However, Beijing had a change of heart, declaring it welcomes transactions that allow TikTok to continue operating. China’s Foreign Ministry spokesperson Mao Ning said on Tuesday that companies should “decide independently” about their operations and acquisitions.
Chinese officials are exploring options that could keep TikTok running in the United States. According to reports, officials are considering allowing trusted American investors, including Tesla CEO Elon Musk, to invest in TikTok’s U.S. operations.
Musk, who runs Tesla and owns X, has connections in China due to Tesla’s large presence there. Over the weekend, during Trump’s inauguration celebrations, he met with Chinese Vice President Han Zheng.
Kevin Zhou, a journalist at Pandaily, revealed that Zhang Yiming, the founder of ByteDance, and Musk have also previously met. “Zhang compared Musk to Apple founder Steve Jobs but said Musk was bolder and had greater vision,” Zhou said.
The potential deal faces significant hurdles. Representative Frank Pallone criticized Trump’s executive order as “circumventing national security legislation passed by an overwhelming bipartisan majority in Congress.”
Some lawmakers warn helping TikTok could be costly. Senator Tom Cotton said companies that keep TikTok running “could face hundreds of billions of dollars of ruinous liability under the law.”
“TikTok isn’t just another social media platform,” Cotton added. “It’s a tool that has been used to gather data on Americans.”
Legal experts question Trump’s authority to delay the ban. University of Richmond law professor Carl Tobias said the law includes a provision allowing the president to postpone the ban for up to 90 days. But only if substantial progress is made on national security concerns, he said.
TikTok stopped working Saturday evening when a congressional ban took effect. TikTok resumed operations Sunday, thanking Trump for “providing the necessary clarity and assurance.” The app remains unavailable for download in U.S. app stores while negotiations continue.
For now, existing TikTok users can continue posting and viewing videos while negotiations proceed.
