Tiktok’s future in the United States is once again in the air. President Trump recently gave Tiktok an extra 75 days to finalise his contract to sell Tiktok’s US business. Behind the scenes, China appears to be pushed back violently, but it’s not just about political stance.
At the heart of the standoffs are Tiktok’s algorithms, technologies that enhance addictive recommendation systems. The ordinance considers it a critical part of its business and, under Chinese law introduced in 2020, exporting such technology requires government approval. Without the green light of Beijing, at least in its perfect form, sales never happen.
When asked about the extended deadline, China did not restrain it. A spokesman for the Commerce Department said the country “opposes practices that ignore the laws of the market economy, forcefully plunder and undermine the legitimate rights and interests of businesses.”
The statement also made clear that business contracts including Tiktok must be in line with Chinese laws, including rules regarding technology exports.
“Specific business arrangements must comply with Chinese laws, including exports of technology that must be approved by the Chinese government.”
It is slowly placed in a difficult place. Selling Tiktok without a core algorithm will significantly reduce the value of your app. However, exporting without a license may violate Chinese law. In any case, the path ahead is a hassle.
The US lawmakers aren’t excited about the delay either. Some have raised concerns that Tiktok’s US operations could still remain influential after sales. For them, other than a complete retirement, it is a national security risk.
Meanwhile, the co-founders of Perplexity AI and Reddit are among those who participated in Tiktok’s efforts to acquire US operations, the latter positioning themselves as the key voice of the push, taking over control of the platform.
As the clock is etched into a new deadline, Tiktok is stuck between two powerful governments. What happens next could be a reconstruction of the future of US apps or cut out completely.
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