Trump signs executive order on TikTok
US President Donald Trump on Monday (Jan 21) signed an executive order delaying enforcement of TikTok’s US “refuse or ban” law for 75 days, as Chinese officials cautiously signaled a new willingness to agree to sell the app to a non-Chinese user.
The order directs the attorney general not to levy fines against app stores and service providers that help TikTok continue to operate in the U.S. and also directs his administration to send letters to each provider saying “there was no violation of the law and that there is no liability for any conduct occurring during the period stated above.”
Trump’s order was one of many the new president signed within hours of being sworn in. Some legal experts and lawmakers said the move could be legally questionable. Politician reported.
China’s response to TikTok negotiations
Meanwhile, on the same day, China signaled a new willingness to cooperate with the US government to keep TikTok operating in the US, seemingly reversing its previous stance opposing any forced sale of the social media platform.
China’s Foreign Ministry said on Monday that companies should be free to make independent decisions about their operations and acquisitions, responding to President Donald Trump‘s proposal for the US to have “50% shared ownership” of TikTok with current or new owners.
Trump made the announcement on Monday via his social media platform, Truth Social: “I would like the USA to have 50% the position of the owner in the joint venture. By doing this, we are saving TikTok, keeping it in good hands and allowing it to (remain) functional. There will be no TikTok without US approval. With our approval, it’s worth hundreds of billions of dollars, maybe trillions.”
“So my initial thought is a joint venture between the current owners and/or new owners whereby the US would receive 50% of the shares of the joint venture created between the US and any purchase we choose.”
Trump’s statement came after TikTok briefly went dark for 14 hours in the US following the enactment of a law banning TikTok if ByteDance failed to sell the business. TikTok resumed operations after the company said Trump had provided “necessary clarity and assurance” to its service providers.
“When it comes to actions such as management and acquisition of businesses, we believe that these should be taken by companies themselves in accordance with market principles. When it comes to Chinese companies, Chinese laws and regulations must be followed.”
Mao Ning, Chinese Foreign Ministry
Chinese Foreign Ministry Representative Mao Ning told reporters during the next press conference on Monday: “When it comes to actions such as management and acquisition of businesses, we believe that these should be taken by companies themselves in accordance with market principles. When it comes to Chinese companies, Chinese laws and regulations must be followed.”
This marks a softening of the Chinese government’s position, which contrasts with its earlier explicit opposition to the sale of TikTok. However, the reference to making decisions “in accordance with market principles” can also be seen as a criticism of the US legal requirement to sell assets.
Chinese government owns 1% share – the so-called “golden share” – in the parent company of TikTok, ByteDance.
Over the past year, China has firmly opposed any forced sale of TikTok, a Foreign Ministry spokesman said. Wang Wenbin criticized the United States’ actions as disruptive to international trade and counterproductive.
“U.S. bullying disrupts the normal international trade order and will ultimately backfire,” Wang told reporters in March 2024.
Politician noted that TikTok CEO Tzu Chu Show attended Trump’s inauguration on Monday and sat in a prominent place – next to Tulsi Gabbard, Trump’s nominee for director of national intelligence.
According to report at CNN, Trump’s proposal to split TikTok 50-50 was met with backlash among social media users in China. One comment, which received thousands of likes, argued that “Apple and Tesla should also then give 50% of their shares to Chinese companies,” while another called for China to take “50% control of Nvidia.”
Meanwhile, Wall Street Journal reported that the founder of ByteDance, Zhang Yiming, one of China’s richest men, could facilitate the deal through his connections. Notable among them is his connection with Elon Musk, the richest man in the world and a Trump confidante. This was reported by sources familiar with the situation. WSJ noted that Zhang and Musk were involved in discussions last year when it became clear that Congress would move to ban TikTok in the US.
Zhang holds 21% equity stake in ByteDance and retains a controlling stake through enhanced voting rights.
On social network X (earlier Twitter), which he bought in 2022, Musk said: “I have been against banning TikTok for a long time because it goes against freedom of speech.”
—With additional reporting by Daniel Tenser
Trump signs executive order delaying TikTok ban, as China appears to soften stance on selling app
