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TikTok deal put on hold after China indicated it would reject it over tariffs
A deal to divest TikTok's U.S. assets is on hold after China indicated it would block the agreement due to recently announced U.S. tariffs. The deadline for ByteDance to complete the sale has been extended by 75 days, complicating the transaction that aimed to create a new U.S.-based company with minimal Chinese ownership.
Key points
- The U.S. assets of TikTok were set to be spun off into a new U.S. company, largely finalized by Wednesday.
- President Trump announced a 75-day extension for ByteDance to divest TikTok's U.S. operations.
- The deal's hold follows China's rejection due to U.S. tariffs announced this week.
- ByteDance was to retain less than 20% ownership in the new company to address national security concerns.
Why it matters
- This situation highlights the ongoing tension in U.S.-China relations regarding technology and trade.
- There are parallels to past disputes involving tech companies and geopolitical issues.
- The deal's hold reflects broader 2025 IT trends regarding data sovereignty and corporate governance in international frameworks.
The paused TikTok deal underscores the complexities of international business amid heightened trade tensions, illustrating the impact of national policies on global tech deals.