China Responds: TikTok Sales Halt After Tension Is Sparked by U.S. Tariffs

In the US, TikTok has encountered yet another obstacle, and this time, it comes straight from Beijing. Following Trump’s imposition of wide new tariffs on China and other nations earlier this week, the Chinese government is indicating that it will not consent to a sale of TikTok’s U.S. business until more general trade difficulties have been resolved.

Trump was compelled by the escalating tension to issue an executive order that extends byteDance, the Chinese parent company of TikTok, another seventy-five days to find a non-Chinese buyer. As part of a law approved in 2024 mandating the divestiture of TikTok owing to national security concerns, the deadline was initially slated to expire on April 5.

Once the new tariffs were revealed, Chinese officials allegedly objected to Trump’s earlier willingness to clinch a deal that would establish a new, U.S.-owned TikTok company, with ByteDance owning a small minority position. According to people with knowledge of the discussions, China made it apparent that it would not approve the sale unless trade and tariff concerns were resolved in a different negotiation.

An already complicated international tech stalemate has seen a major development with the postponement. For several months, U.S. officials thought they were on the verge of negotiating a deal that would meet national security standards and let TikTok to continue its domestic operations. But almost immediately, China’s position changed as a result of the increased taxes.

A representative for ByteDance acknowledged that talks with the US government are still in progress, but stated that any agreement would be “subject to Chinese law” and that “key matters still need to be resolved.” China, in other words, has the last word.

ByteDance has not officially stated if it plans to sell the app at all, and Beijing’s most recent action renders a speedy conclusion unrealistic. Chinese officials are growing increasingly worried about creating a precedent that would put other Internet companies in a similar predicament, according to insiders.