TikTok's Last-Minute Maneuver: Can Trump Save the App from a Ban?
In a surprising turn of events, TikTok appears to have discovered a last-ditch strategy to avoid an impending ban in the United States. After months of ineffective lobbying efforts in Washington, the company has shifted its focus to the individual who holds significant influence over the app’s fate: President Donald Trump. This strategic pivot seems to be yielding results, as reports indicate that Trump is now inclined to help prevent the ban.
Over the weekend, TikTok temporarily went offline for 14 hours in the U.S., reemerging with a message aimed at its 170 million users: their thanks to President Trump for his efforts in getting the app back online. Although some might argue that Trump was not the sitting president during this crisis, TikTok’s messaging suggests it was intended to flatter Trump himself, highlighting the CEO Shou Zi Chew's recent attempts to cultivate a relationship with the president. This includes not only public appearances and video messages but also a personal visit to Trump's Mar-a-Lago estate and attendance at his inauguration.
However, the reality remains that while Trump may be willing to delay the ban, he does not possess the unilateral authority to reverse existing laws. Although he can potentially issue an executive order to extend the timeline for a mandated sale of TikTok, the legal requirements present a significant hurdle. Under current law, the president can extend the 270-day period for a forced sale by an additional three months, but only if it can be proven that TikTok has made substantial progress toward a sale. So far, TikTok has not engaged seriously in negotiations to sell its U.S. operations.
The challenges are compounded by the reluctance of TikTok's Chinese parent company, ByteDance, as well as the Chinese government, both of whom have firmly rejected the idea of selling the U.S. subsidiary. The algorithms that Power TikTok are integral to its appeal, and China’s export controls on this technology add yet another layer of complexity to any possible sale negotiations.
Moreover, divisions within the Republican party further complicate the situation. Prominent Republican figures, including Mike Johnson and Tom Cotton, have pushed the TikTok ban forward and now insist on strict enforcement of the relevant laws without delay.
The implications for U.S. companies that work with TikTok, such as Apple, Google, and Oracle, could be severe. These corporations risk substantial fines for continuing to provide TikTok with the necessary infrastructure to operate within the U.S. Despite Trump’s reassurances, Apple and Google took definitive action by removing TikTok from their app stores, leaving the app unable to be updated or reinstalled by users.
Another pivotal player in this scenario is Oracle, which is responsible for storing TikTok users’ data on its servers within the U.S. Oracle seems to place more weight on Trump’s words than on existing laws and the Republican hawks’ foreign policy stances. However, there are no current discussions indicating that Oracle’s chief, Larry Ellison, is considering ownership stakes in the app.
As conversations about potential buyers surface, Trump has hinted at allowing the U.S. to retain a 50% ownership stake in TikTok. A variety of potential purchasers may be vying for a stake, including AI startup Perplexity, YouTube sensation MrBeast, and former Treasury Secretary Steven Mnuchin, among others. The name of Elon Musk has also emerged in speculation, especially considering his favorable rapport with China.
Yet, the central question still looms: None of these potential buyers can act without Chinese approval. A more feasible resolution would be for TikTok to divest certain parts of its U.S. operations while Trump loosely interprets legal requirements to declare this as a valid disposition. This kind of creative legal maneuvering may not deter those involved in the ongoing TikTok saga.
As the clock ticks down, TikTok finds itself in a precarious dance with both the U.S. government and its parent company in China. The coming weeks will prove crucial in determining if the app can remain operational in the U.S. or if it ultimately faces an irreparable ban.
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