With President Donald Trump re-elected, his idea for a TikTok joint venture could set a precedent for how he expects all Chinese companies to operate in the United States.
On Sunday night, he posted on Truth Social: This allows you to save your TikTok, manage it properly, and [stay] above. “
The next day, President Trump signed an executive order giving TikTok an additional 75 days to find a buyer before facing a ban.
It's unclear what it means for the U.S. to own 50% of TikTok or how it would work, but sources told NYNext that President Trump would combine TikTok with a U.S. company and make profits. He said there is a high possibility that the company will pursue a joint venture to share risks. This could become a blueprint for how all companies with Chinese ownership operate in the United States, the sources added.
The joint venture could be very similar to the deal between TikTok and a consortium of U.S. companies that Trump struck during his first term and then scrapped. In 2020, Microsoft and Walmart considered possible deals with apps that could give them access to TikTok viewers and their data.
Many U.S. companies granted the right to do business in China, including McDonald's, General Motors and Boeing, function as joint ventures, but China has loosened some of its rules in recent years. For example, Tesla is allowed to operate independently as a wholly foreign-owned company.
“If an industry needs to establish a joint venture in China, [a Chinese company in that industry] There needs to be a joint venture here,” the source said. “Trump loves the mutual trade framework, he loves this.” [idea]”
So far, President Trump's reciprocal trade policy has focused primarily on imposing tariffs.
But sources told NYNext that advisers are asking President Trump to invest in at least some of the roughly 5,000 Chinese companies with operations in the U.S., including Tem, Shein and Alibaba, that are affiliated with U.S. partners. He is said to be floating the idea of issuing a presidential order mandating this.
It remains to be seen whether TikTok's joint venture will fully meet the terms of the Supreme Court-backed law requiring a complete divestment from its Chinese parent company ByteDance, or whether the company will actually agree to a joint venture or sale. It's unknown. .
TikTok seems keen to cooperate so far.
“We are providing our service providers with the clarity and assurance they need to bring TikTok to more than 170 million Americans and without penalties that enable more than 7 million small businesses to thrive. We thank President Trump for this,” the company said in a statement Monday. Shou Zi Chew attended President Trump's inauguration. “This is a strong position in support of the First Amendment and against arbitrary censorship. We look forward to working with President Trump on a long-term solution to keep TikTok in the United States.”
Of course, the joint venture would also require some cooperation with China.
Asked about Chu's willingness, Trump told White House reporters: “I think he'd probably be happy, because he doesn't have any.”
But the Chinese government, which must approve the sale of TikTok, may be less thrilled and far more picky about who it works with.
that any of the companies or people who have expressed interest (currently including Frank McCourt, Kevin O'Leary, Mr. Beast, Bobby Kotick, Steve Mnuchin, Perplexity, Rumble, etc.) have actually worked with the Chinese government; Companies and individuals with certain criteria may be considered more seriously. .
A source close to TikTok said, “The Chinese government has no intention of allowing many people to operate TikTok.''
One person they feel comfortable around is Elon Musk. wall street journalhas been floated by authorities as a potential buyer.
The Chinese government has denied reports that it would approve the sale of TikTok to Musk, who has never said he was interested, but officials say he knows authorities and has some influence. This suggests that they want potential buyers.
“Given that there is a Tesla factory in China, an acquisition by Elon could further increase China's influence,” the person added. “Elon is the best buyer…He has good relations with the Chinese government and has national security clearance for all his companies.”
Another reason why the Musk merger makes sense? He could work out some kind of deal between TikTok and X that would increase revenue for both companies and expand the platform. earlier this week Suggested by Musk He is interested in reviving Vine, a popular short-form video service that shut down in 2017. The deal with TikTok will be one way to get more Vine-like videos on X.
“If they had Trump and Elon's blessing, they could have bought TikTok… People want a Zuckerberg competitor,” another source added.
This article is part of a new editorial series called NYNext, which focuses on innovation across various industries in New York City and the people leading the way.
