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After the tariff announcement, China has given a new blow to America. China has announced that it will not approve the TikTok deal. Under this deal, Bytedance, the company that operates TikTok, has to sell most of its US operations to American companies. According to American law, only 20 percent stake will be under the Chinese company. But the special thing is that it is necessary to get approval for this deal from the Chinese government.
Trump extended the deadline
Meanwhile, on Friday, April 4, Donald Trump extended the deadline for selling TikTok's stake in the US by 75 days. According to sources, the deal was almost finalised by Wednesday, April 2. But Trump's tariff announcement on the same day spoiled everything. Now Trump says that he is ready to reduce tariffs on China for the sake of the TikTok deal.
Bytedance will have to sell 80 percent stake
According to sources, TikTok's US operations will have to be sold to a new US company. Its 80 percent ownership and operation will be with US investors. Bytedance will have less than 20 percent stake. According to the information, the deal has been approved by existing investors, new investors, Bytedance and the US government. But now the ball is in the court of the Chinese government.
Differences over the deal
ByteDance said that any agreement is subject to relevant review procedures in accordance with Chinese law. There are still differences over the deal. The Chinese Embassy in Washington said that China has clarified its position on TikTok on many occasions. China has always respected and protected the legitimate rights and interests of enterprises. We have opposed practices that violate the basic principles of the market economy.
China is not happy with our tariffs: Trump
Donald Trump wrote on social media that more work is needed on this deal. We hope that we will continue to work in good faith with China. I think China is not very happy with our mutual tariffs. Let us tell you that Trump first announced a 20 percent tariff on China and then a 34 percent tariff on April 2. Overall, America has imposed a 54 percent tariff on China so far. In response, China also announced tariffs on America.
I don't want TikTok to go dark
Trump further said that our administration is in touch with four different groups about a possible deal for TikTok. We are eager to finalize the deal with China. I do not want TikTok to go into obscurity. Last year, the US Congress passed a law against TikTok. The app is accused of spying in the US. TikTok had to stop its operations by January 19. But Trump gave relief to TikTok and lifted the ban on it. Now Trump has extended the deadline by another 75 days.
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