TikTok will go dark in US without Chinese approval of sale deal, US commerce secretary says
WASHINGTON: TikTok will have to cease operations in the United States if China does not approve a deal for the sale of the popular short video app, US Commerce Secretary Howard Lutnick said on Thursday (Jul 24).
Speaking on CNBC, Lutnick said the US must control the algorithm that powers the platform, which is used by an estimated 170 million Americans.
Last month, President Donald Trump extended the deadline for ByteDance, TikTok’s China-based parent company, to divest the app’s US assets by 90 days to September 17. The extension came despite a 2024 law requiring a sale or shutdown by January 19 this year unless significant progress was made.
“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,” Lutnick said.
‘TIKTOK WILL GO DARK’ IF NO DEAL
“If that deal gets approved, by the Chinese, then that deal will happen,” Lutnick added. “If they don’t approve it, then TikTok is going to go dark, and those decisions are coming very soon.”
TikTok did not immediately respond to a request for comment.
A deal had been under discussion earlier this year to spin off TikTok’s US operations into a new American-based company, majority-owned and operated by US investors. That effort stalled after Beijing signalled it would not approve the transaction, following Trump’s imposition of new tariffs on Chinese goods.
LEGAL UNCERTAINTY PERSISTS
Although a law mandating TikTok’s sale or shutdown technically went into effect in January, Trump has since issued three enforcement delays.
Attorney General Pam Bondi recently sent letters to Apple, Google and other firms hosting or servicing TikTok, stating that the Justice Department would not pursue legal claims against them for any violations, citing Trump’s authority over national security and foreign policy.
Some Democratic lawmakers have challenged Trump’s legal ability to extend the divestment deadline and have questioned whether the proposed deal meets the statutory requirements.
