By David Shepardson
July 24 (Reuters)
The center of tensions between the United States and China is now TikTok. The platform has become a political and economic debate, as Howard Lutnick, the US Secretary of Commerce, has certain requirements for the platform’s continued presence in the country: control of this technology by US companies. Tiktok’s future in the country now depends on these intense trade and geopolitical negotiations between the two countries.
TikTok with operations under America control
U.S. Commerce Secretary Howard Lutnick said on Thursday that TikTok will have to stop operating in the United States if China does not approve a deal for the sale of the Chinese-owned short video app that is used by some 170 million Americans. Lutnick, speaking on CNBC, also said the United States must control the algorithm that makes the social media platform work.
Last month, President Donald Trump extended by 90 days to September 17 a deadline for China-based ByteDance to divest the U.S. assets of TikTok. Trump’s action took place despite a 2024 law that mandated a sale or shutdown by January 19 ofthis year if there had not been significant progress.
“China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm. If that deal gets approved, by the Chinese, then that deal will happen. If they don’t approve it, then TikTok is going to go dark, and those decisions are coming very soon” Lutnick said.
TikTok did not immediately comment. A deal had been in the works this spring that would spin off TikTok’s U.S. operations into a new U.S.-based firm, majority-owned and operated by U.S. investors. This stalled after China indicated it would not approve it following Trump’s announcements of steep tariffs on Chinese goods.
Congressional decisions are postponed: the legality of the measure is debated
Trump postponed making decisions, creating a legal and political impasse surrounding TikTok’s control. Afterward, the situation became uncertain regarding the enforce-ability of the agreements, as the president’s order challenged an already-enforced law, sparking backlash from Democratic congressmen.
Trump has three times granted reprieves from federal enforcement of the law that mandated the sale or shutdown of TikTok that was supposed to take effect in January. Attorney General Pam Bondi sent letters to Apple AAPL.O, Google GOOGL.O and other companies that provide services or host the TikTok app that were made public this month.
Justice Department withdraws lawsuits and reinforces the political nature of the decision
The letters said the Justice Department was irrevocably relinquishing any claims against the companies for potential violations of the law, citing Trump’s determination that an abrupt shutdown would interfere with his overseeing national security and foreign affairs. Some Democratic lawmakers argue Trump has no legal authority to extend the deadline and suggest the deal under consideration would not meet legal requirements.
Companies like Apple and Google were released by the Department of Justice from their legal obligations under the new measure. The Executive branch tries to justify this relaxation by arguing that an abrupt closure would harm national security. However, lawmakers still challenges the legality of these extensions and the consistency of the agreement.
TikTok becomes a key player in the technology dispute
The agreements surrounding TikTok have become a central piece of contention between US and China over digital innovation dominance. Now, the platform’s future in the US will depend on diplomatic decisions and clashes, which involve strategic interest of both parties. The outcome of this case could transform how major power deal with foreign digital media and could put national sovereignty at risk.