A proposed plan to separate TikTok’s U.S. operations into a new, American-led entity has been paused after signals from Beijing indicated potential opposition tied to recent tariff announcements by former President Donald Trump.
According to sources close to the matter, the deal had been nearly finalized by midweek, with terms calling for the creation of a new U.S.-based company that would take over TikTok’s American operations. Under the arrangement, the majority of the company would be controlled by U.S. investors, while TikTok’s parent company, China-based ByteDance, would retain a minority stake of less than 20%.
The plan had reportedly gained approval from all involved parties, including current stakeholders, new U.S. investors, ByteDance executives, and representatives from the U.S. government. However, momentum was halted after Chinese authorities signaled they would likely block the deal, viewing it as part of a broader geopolitical conflict.
This development came shortly after Trump’s announcement of reciprocal tariffs targeting Chinese imports, escalating tensions between the two economic superpowers. China’s resistance is seen as part of a growing effort to push back against what it perceives as forced divestments of Chinese-owned assets in foreign markets.
At the time of reporting, neither ByteDance nor the White House had issued public statements regarding the status of the deal. The Chinese Embassy in Washington also declined to comment.
The proposed TikTok restructuring has long been part of broader concerns in the U.S. over data privacy and national security, with lawmakers raising questions about the app’s Chinese ownership. The pause in negotiations highlights how international trade policy and political maneuvering continue to complicate efforts to resolve the future of the popular video-sharing platform in the U.S. market.
