TikTok to Continue Operating in the US Market If it Complies with US Ownership Terms

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On Monday, US President Donald Trump signalled that a deal had been reached with China that allows TikTok to function smoothly in the US market. The Trump administration announced a deadline to ban TikTok on 17 September. However, just before the deadline was about to expire, his administration contacted the Chinese app to comply with the US ownership terms. 


What did US President Donald Trump Say?

Trump did not share clear details about the agreement, but he said on Truth Social that "a deal was also reached on a ‘certain’ company that young people in our country very much wanted to save.” He also said he would be having talks with Chinese President Xi Jinping.

Further adding, “The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly.” However, there was no acknowledgement of what Trump said from China. Recently, trade talks were held between the US and China in Spain. One of the main agendas of these talks involved the social media giant TikTok.


Why was it Difficult for the US to Ban TikTok?

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According to Garcia-Herrero, the US is reluctant to ban TikTok because most of its users are young voters. Trump had also previously said that "Young people in our country very much wanted to save Tiktok” This strengthened Garcia-Herrero's point. Besides this, there were many legal hurdles based on First Amendment rights that also made it difficult to ban TikTok. 


What was the Response of China?

On Sunday, the negotiations began in Madrid, Spain, to address the trade tie. This was the fourth round of talks in four months. The negotiations started when US President Donald Trump asked European allies to impose heavy duties on Chinese goods for purchasing Russian oil.   

The agreement involved American companies creating a US-based entity called TikTok Global, where Oracle would handle US user data to address security concerns. China responded by calling it coercion. Similarly, India has also faced US tariffs for buying crude oil from Russia at discounted prices and funding the war in Ukraine.

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Donald Trump has indicated a deal has been reached regarding TikTok's US operations following trade talks with China, preventing a potential ban. The agreement involved American companies partnering with ByteDance to create a US-based entity called TikTok Global.