Donald Trump, the US president-elect, has thrown his weight behind TikTok, sparking speculation about potential solutions to avert the app’s looming ban in the United States. “We need this sucker around for now,” Trump told supporters, just days after meeting TikTok CEO Chew Shou Zi in Florida. His stance, however, sets him on a collision course with bipartisan legislation and a politically divided Washington.
The controversy over TikTok’s future stems from national security concerns raised by US lawmakers, who fear the Chinese government could exploit ByteDance, the Beijing-based parent company, to access American user data. In April 2024, President Joe Biden signed legislation that mandates TikTok’s removal from US app stores and web hosting services unless ByteDance divests its ownership by January 19, 2025.
Trump’s affinity for TikTok is evident, which he credits the platform for engaging a vast young user base critical to his campaign’s success. But with Congress showing rare bipartisan agreement, overturning the legislation seems politically unfeasible, even with Trump’s influence over the Republican Party.
Legal Hurdles and Supreme Court Intervention
TikTok has taken its battle to the Supreme Court, arguing the ban infringes on First Amendment rights to free speech. The court, dominated by Trump-aligned conservatives, is set to hear the case on January 10, 2025, a mere nine days before the ban’s enforcement. This follows a lower court’s unanimous decision to uphold the legislation recently. Experts suggest that a favorable ruling for TikTok could offer the clearest path forward, but the outcome remains uncertain.
ByteDance’s Reluctance to Sell
Another potential solution is ByteDance selling its US operations to a non-Chinese buyer. However, the company has consistently resisted this option, citing concerns over valuation and operational integrity. Even if Trump extends the ban deadline by 90 days to facilitate a sale, finding a suitable buyer presents challenges. Former Treasury Secretary Steve Mnuchin’s private equity fund, backed by SoftBank and Abu Dhabi’s Mubadala sovereign wealth fund, has shown interest. Meanwhile, billionaire Frank McCourt and Elon Musk have also emerged as potential contenders, though antitrust concerns may deter major tech companies from stepping in.
Trump’s Leverage and Diplomatic Constraints
As president, Trump could attempt to address national security concerns through his Department of Justice, potentially satisfying lawmakers. However, such a move risks being perceived as yielding to China. Additionally, any agreement would require Beijing’s approval, further complicating negotiations given the strained US-China relations.
A Repeat of 2020’s Incomplete Deal?
This is not the first time TikTok has faced scrutiny under Trump’s leadership. In 2020, a deal involving Oracle and Walmart for partial ownership of TikTok’s US operations fell apart amid legal challenges and the transition to the Biden administration. Today, Trump faces an even more complex political and legal landscape.
The question remains: Can Trump broker the “deal of the century” to secure TikTok’s future while addressing national security concerns? With 170 million monthly active users in the US, the stakes are high for the app’s young, devoted audience, and for Trump, who seeks to retain their loyalty.
By: Kpost
Information Source: Scmp
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