WASHINGTON: TikTok must stop operations in the US if China doesn’t approve a deal for the sale of the favored quick video app, US Commerce Secretary Howard Lutnick stated on Thursday (Jul 24).
Talking on CNBC, Lutnick stated the US should management the algorithm that powers the platform, which is utilized by an estimated 170 million Individuals.
Final month, President Donald Trump prolonged the deadline for ByteDance, TikTok’s China-based mum or dad firm, to divest the app’s US belongings by 90 days to September 17. The extension got here regardless of a 2024 regulation requiring a sale or shutdown by January 19 this 12 months except vital progress was made.
“China can have slightly piece or ByteDance, the present proprietor, can hold slightly piece. However principally, Individuals may have management. Individuals will personal the expertise, and Individuals will management the algorithm,” Lutnick stated.
‘TIKTOK WILL GO DARK’ IF NO DEAL
“If that deal will get permitted, by the Chinese language, then that deal will occur,” Lutnick added. “In the event that they don’t approve it, then TikTok goes to go darkish, and people selections are coming very quickly.”
TikTok didn’t instantly reply to a request for remark.
A deal had been below dialogue earlier this 12 months to spin off TikTok’s US operations into a brand new American-based firm, majority-owned and operated by US buyers. That effort stalled after Beijing signalled it might not approve the transaction, following Trump’s imposition of recent tariffs on Chinese language items.
