US-China relations: After the tariff announcement, China has given a new blow to America. China has announced that it will not approve the TikTok deal. Under this deal, Bytedance, the company that operates TikTok, has to sell most of its US operation to American companies. According to American law, only 20 percent stake will be under the Chinese company. But the special thing is that it is necessary to get approval of this deal from the Chinese government.
Trump extended the deadline
Meanwhile, on Friday, April 4, Donald Trump has extended the deadline for selling TikTok’s stake in America for 75 days. According to sources, this deal was largely finalized by Wednesday, April 2. But Trump’s tariff announcement on the same day spoiled everything. Now Trump says that he is ready to reduce tariffs on China for the sake of the TikTok deal.
Bytedance will have to sell 80 percent stake
According to sources, TikTok’s US operation will have to be sold to a new US company. Its 80 percent ownership and operation will be with American investors. Bytedance will have a stake of less than 20 percent. According to the information, the deal has been approved by existing investors, new investors, Bytedance and the US government. But now the ball is in the court of the Chinese government.
Differences on the deal
Bytedance said that according to Chinese law, any agreement is subject to relevant review procedures. There are still differences over the deal. The Chinese Embassy in Washington said that China has clarified its position on TikTok on several occasions. China has always respected and protected the legitimate rights and interests of enterprises. We have opposed practices that violate the basic principles of the market economy.
We are still engaged in talks with the US government. No agreement has been reached yet. There are differences between the two sides on several major issues. Bytedance’s statement on WeChat.
China is not happy with our tariffs: Trump
Donald Trump wrote on social media that more work needs to be done on this deal. We hope we will continue to work in good faith with China. I think China is not very happy with our mutual tariffs. Let us tell you that Trump first announced a 20 percent tariff on China and then a 34 percent tariff on April 2. Overall, the US has imposed a 54 percent tariff on China so far. In response, China also announced tariffs on the US.
I don’t want TikTok to go dark
Trump further said that our administration is in touch with four different groups about a possible deal for TikTok. We are eager to finalize the deal with China. I don’t want TikTok to go dark.
Last year, the US Congress passed a law against TikTok. The app is accused of spying in the US. TikTok had to shut down its operations by January 19. But Trump gave relief to TikTok and lifted the ban imposed on it. Now Trump has extended the deadline by another 75 days.
