I=5
Trump said talks on sale of TikTok are progressing well
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Trump said his administration is talking to four groups about buying TikTok and that all talks were good.
“We’re dealing with four different groups. And a lot of people want it, and it’s up to me,” he said.
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Trump has also said that he is willing to extend the dateline for a ban if the deal is not reached by April 5.
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Meanwhile, Chinese government position on the sale has been muted, with the Chinese ministry saying in January that it was up to Bytedance to decide on whether to sell TikTok but adding that such a sale must comply with the Chinese laws.
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Last month, the Washington Post reported that TikTok was slow-rolling negotiations for a sale as it waits for the Chinese government approval. Citing people familiar with the matter, the Washington Post added that Beijing is increasingly willing to let TikTok operations die instead of approving a sale as it waits for a “grand deal” with the Trump administration that includes trade and tech concessions.
Assessment
It appears to me that Trump is willing to do whatever it takes to achieve TikTok sale to the US. Given that some potential buyers are willing to buy TikTok without the algorithm, it’s highly likely that China will allow the sale but only if it gets major concessions from the US such as lifting of Trump’s tariffs. However, estimates indicate that it will likely take TikTok at least two years to build a new algorithm. By then, the likes of Reels will likely be a step ahead, both in terms of user base and technology.