Recently, President Trump announced he had found a buyer for TikTok, the controversial short video app from China. However, he expressed frustration that the money should go to sellers who’ve already gotten what they want.
Sources suggest that TikTok is being used as leverage in the ongoing US-China trade talks, with Beijing aware of Trump’s desire to keep the app operational in the United States.
The app hasn’t been sold to American investors yet, which seems to be a necessary step to comply with US laws. These laws restrict domestic operations until Chinese President Xi Jinping is satisfied with the terms of a favorable trade agreement with the White House.
One person involved in the discussions noted, “Trump has no sellers yet.” They suggested that President Xi has not yet been visible in the negotiations surrounding TikTok in broader trade discussions.
This left Trump somewhat puzzled during a recent Fox News appearance when bankers and investors involved in negotiations insisted, “There are TikTok buyers.”
He added that China would “probably” permit the sale to a group of wealthy individuals willing to step in. It’s not exactly a new occurrence to see “very wealthy people” interested in acquiring TikTok, after all.
Back in April, there was a wealthy investor alongside a group of tech moguls ready to make a bid on businesses in the US until Trump launched a trade war against Beijing, which brought about 145% tariffs on imports.
As negotiations over various trade issues continued, the number of potential buyers has diminished. One interested group mentioned was Oracle, a tech giant co-founded by Trump’s ally, Larry Ellison, which could potentially take over TikTok’s US operations.
In 2024, a bipartisan group of US lawmakers raised concerns about the possibility of China using TikTok for spying on American citizens. They passed a law, later signed by President Biden, to halt operations in US app stores unless the Chinese relinquished control over the platform.
This ban was set to take effect on January 19, just before Trump assumed office.
Interestingly, Trump, who once intended to ban TikTok, changed his stance and grew fond of the app after the 2024 election. He believed it played a significant role in attracting younger voters.
Since returning to the White House, Trump has been actively seeking solutions. He issued a series of executive orders aimed at preventing the TikTok ban, even as some Republicans accused him of stalling the deal-making process.
The final negotiation terms suggested that the Chinese wanted a minority ownership stake in the newly formed US management company while still maintaining ownership of TikTok’s vital algorithm, which curates videos based on user preferences.
Even though the Chinese have denied allegations of spying, US lawmakers remain skeptical that a primarily US-controlled operation would guarantee adequate protection against potential espionage.
That might explain why it has taken Trump some time to establish a structure that would satisfy various stakeholders. And despite identifying a buyer that appeals to sellers, TikTok could still face a ban in the coming months unless Trump moves quickly on an extension set for mid-September.
