In April 2024, the United States enacted a law requiring TikTok’s transfer to a U.S.-based owner. Originally set to take effect in January, the law’s implementation was postponed by President Trump, who granted an additional 90 days to facilitate a potential agreement.
According to the law, TikTok’s Chinese parent company, ByteDance, would be permitted to retain only a 20% stake in the „American TikTok “. Crucially, ByteDance would be prohibited from controlling American TikTok’s algorithm or accessing its user data.
On July 4, President Trump told reporters that a deal was “pretty much” finalized. However, he noted that it would likely require approval from the Chinese Communist Party and added that talks with the Chinese side, either President Xi Jinping or one of his representatives, were expected to begin on July 7 or 8.
Chinese Foreign Ministry spokesperson Mao Ning refrained from commenting directly on Trump’s remarks. Instead, she reiterated China’s general stance:
“China has reiterated its principle and position on issues related to TikTok on multiple occasions.”
The Chinese Foreign Ministry has consistently urged the United States to provide an “open, fair, and non-discriminatory business environment.” It maintains that acquisitions and business operations, including those involving TikTok, should be determined independently by companies in accordance with market principles.
TikTok remains a key point of tension in U.S.–China relations. As of July 15, no final agreement has been reached. Under current U.S. law, ByteDance must divest from the American branch of TikTok by September 17, or the app will be banned in the U.S..
Meanwhile, TikTok is also facing regulatory challenges in Canada. In November 2024, the Canadian government ordered a suspension of TikTok’s operations due to national security concerns stemming from ByteDance’s ownership.
On July 2, TikTok CEO Shou Zi Chew sent a letter to Canadian Industry Minister Mélanie Joly requesting a meeting regarding the federal order. Chew warned that if the law takes effect, TikTok would be forced to halt operations in Canada, resulting in the layoff of 350 employees, the end of direct investments, and the suspension of support for Canadian content creators.
Chew argued that the previous Canadian administration’s decision was heavily influenced by developments in the United States. He emphasized that the order was issued by “a different government” under different circumstances and urged the new administration to review the decision. However, as of mid-July, Canadian officials have not responded to TikTok’s appeal.
