President Donald Trump extended, on Friday (4), in 75 days the deadline for the Chinese company bytingance to sell the American assets of the popular Tiktok short video application to a non-Chinese buyer, or face a ban that should come into force in January, according to a 2024 law.
“The agreement requires more work to ensure that all necessary approvals are signed,” said Trump, explaining why he was extending the deadline he had set in January and should expire on Saturday. “We hope to continue working in good faith with China, who, as I understand it, is not very happy with our reciprocal tariffs.”
Currently, China faces a 54% rate on imported products for the United States. Trump said he would be willing to reduce rates on China to make an agreement with Bytedance.
Trump stated that his administration was in contact with four different groups about a possible agreement involving Tiktok, but did not identify them.
“We don’t want Tiktok to disappear’”Trump added.
The White House negotiations about the future of Tiktok, which is used by about half of all Americans, are focusing on a plan so that the largest non -Chinese investors of the controlling company bytedance increase their participation and acquire application operations in the United States, Reuters said.
The plan involves the creation of an entity in the United States for Tiktok and the dilution of Chinese property in the new business below the 20% limit required by US legislation, saving the application from an imminent ban in the country, sources told Reuters.
The Susquehanna International Group of Jeff Yass and General Atlantic de Bill Ford, both represented in the bytedance council, are leading discussions with the White House, as reported by Reuters.
Walmart is also considering joining a group of investors in an agreement for Tiktok, ABC News reporter said on social networks. The great retailer, who had already shown an interest in investing in Tiktok in 2020, did not immediately respond to a request for commentary from Reuters.
The biggest obstacle to any agreement involving Tiktok business in the US is the approval of the Chinese government. So far, Beijing has not made a public commitment to allow the sale.
Tiktok did not immediately respond to a comment request.
This content was originally published in Trump extends the deadline for selling Tiktok in 75 days on CNN Brazil.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
