On Thursday, China rejected a proposal from U.S. President Donald Trump, who suggested he might offer a reduction in tariffs on China in exchange for Beijing’s approval of a deal to sell TikTok. Trump’s remarks were made in the context of ongoing discussions about the app’s future in the United States, with U.S. law mandating that TikTok divest from its Chinese parent company, ByteDance, or face a potential ban.
The U.S. has raised national security concerns about TikTok, fearing that Beijing could use the platform for espionage or to sway public opinion in the U.S. The law requiring TikTok’s divestiture went into effect on January 19, just before Trump’s inauguration, although the outgoing administration granted a delay to allow the app to continue operating. The delay is set to expire on April 5.
Trump told reporters at the White House on Wednesday that he might offer China “a little reduction in tariffs or something” as part of a deal to approve the sale of TikTok. “We’re going to have a form of a deal,” Trump said, adding that if an agreement was not reached by the deadline, he would consider extending it.
China Rebuffs Trump’s Suggestion
Beijing swiftly rejected the idea, with Chinese foreign ministry spokesman Guo Jiakun reaffirming the country’s stance on the issue. Guo said that China had “repeatedly stated our position” on TikTok and emphasized that its opposition to additional tariffs remained “consistent and clear.” This marked another round of tension in the ongoing saga of TikTok’s future in the U.S.
TikTok’s Uncertain Future in the U.S.
TikTok has faced significant challenges in the U.S. since Trump’s administration attempted to ban the app, citing national security concerns. In January, TikTok temporarily shut down operations in the U.S. and was removed from app stores as the law’s deadline loomed. However, Trump’s second term saw a delay of two-and-a-half months in implementing the law, providing space for negotiations with Beijing. TikTok was soon reinstated on U.S. app stores in February, with service resuming.
Potential Buyers Emerge
While TikTok’s future remains uncertain, several entities have expressed interest in acquiring the app. Among the most notable potential buyers is the AI startup Perplexity, which envisions integrating its AI-powered search capabilities with TikTok’s extensive video content. “Combining Perplexity’s answer engine with TikTok’s extensive video library would allow us to build the best search experience in the world,” the San Francisco-based firm stated in a blog post.
Another group, called “The People’s Bid for TikTok,” led by sports and real estate tycoon Frank McCourt’s Project Liberty initiative, is also in the running. Additionally, tech giants Microsoft and Oracle, along with a consortium that includes internet personality MrBeast (Jimmy Donaldson), have shown interest.
Concerns About Control and Competition
In its post, Perplexity warned that any acquisition by a group of investors could allow ByteDance to retain control of TikTok’s algorithm. The firm also raised concerns about the potential for a monopoly if a direct competitor were to acquire the app. “All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists,” Perplexity concluded.
With negotiations ongoing, TikTok’s future in the U.S. remains in limbo, with both potential buyers and the U.S. government carefully watching how the situation unfolds.
