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US Commerce Secretary Warns TikTok Faces Shutdown Without Chinese Approval

share-iconPublished: Friday, July 25 share-iconUpdated: Friday, July 25 comment-icon4 months ago
US Commerce Secretary Warns TikTok Faces Shutdown Without Chinese Approval

Credited from: SCMP

  • TikTok will shut down in the US if a sale to American entities is not approved by China.
  • US officials insist on American control over TikTok’s algorithm.
  • Deadline for Chinese-owned ByteDance's divestment extended to September 17.
  • The forced sale is rooted in national security concerns.
  • Legal hurdles and previous trade agreements complicate negotiations.

During a press conference, US Commerce Secretary Howard Lutnick emphasized that TikTok would be forced to cease its operations in the United States unless China approves a deal for the sale of the Chinese-owned short video app. The app currently boasts around 170 million American users, making the potential shutdown particularly contentious in the US market, according to South China Morning Post, Channel News Asia, and Dawn.

Speaking on CNBC, Lutnick reiterated that the US must control TikTok’s algorithm to safeguard national interests. He stated, “China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control," reinforcing the urgency for an American-controlled algorithm and technology, as reported by South China Morning Post and Channel News Asia.

President Trump has extended the deadline for ByteDance to divest its US assets until September 17, a move that aims to comply with a law mandating a sale or shutdown by January 19 if there was no significant progress. Analysts highlight that this extension comes amid fears over national security regarding the app’s Chinese ownership, according to Channel News Asia and Dawn.

Legal uncertainty persists as to the future of TikTok; despite legislative efforts, previous and current administrations have delayed enforcement of the law mandating divestment. Lutnick's recent comments underscore the ongoing complexities involved in navigating international trade and technology security, impacting negotiations as indicated by reports from South China Morning Post, Channel News Asia, and Dawn.

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