China has reportedly backed out of a deal to sell TikTok to U.S. investors just one day after President Donald Trump announced sweeping global tariffs. ByteDance, TikTok’s Chinese parent company, informed the White House Thursday that it would no longer approve the sale unless the U.S. addresses trade and tariff concerns.
In response, Trump announced on Friday that he would sign an executive order extending the deadline for TikTok to remain operational in the U.S. for another 75 days, as his administration works to finalize a deal that would divest TikTok from China.
Under U.S. law, ByteDance is required to sell TikTok to an approved buyer or face a potential ban in the U.S., a decision upheld by the Supreme Court. While the initial deadline was set for January 19, Trump granted an extension when he took office, and now the deadline has been extended again.
White House officials had been optimistic about the progress of the deal, with discussions underway for TikTok’s operations to be spun off into a new company based in the U.S., with a majority of American investors owning and operating it, while ByteDance would retain a minority stake. The deal, which had been under negotiation for months, was nearly finalized with support from both existing and new investors, as well as ByteDance.
However, after China’s reversal on approving the deal, uncertainty looms over the agreement. The Trump administration had been hopeful that a deal would be in place before the tariffs went into effect, but now it remains unclear whether the tentative deal can proceed.
Despite the setback, Trump expressed confidence on social media, stating, “My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress.” He continued, “The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days.”
A ByteDance spokesperson confirmed that discussions on a “potential solution” are ongoing but emphasized that any agreement would require approval under Chinese law.
