TikTok will shut down soon if China won’t agree to Trump’s deal, official says

The future of TikTok hangs in the balance as negotiations between the U.S. and China remain unresolved. Former President Donald Trump had previously asserted that he could secure a deal to keep the app functioning in the U.S., despite ongoing national security concerns. However, the responsibility for this deal has since shifted to Vice President JD Vance, and after extensive discussions, a solution that satisfies the Chinese government has yet to materialize. Recently, Howard Lutnick, who served as Trump's Commerce Secretary, warned that without China's approval on a new deal—potentially leading to a U.S.-specific version of TikTok—the administration may resort to shutting down the app. In a statement to CNBC, Lutnick indicated that TikTok would cease operations in the United States if an agreement could not be reached between China and ByteDance, the parent company of TikTok. The proposed deal aims to ensure that American entities would gain ownership over the app's technology and algorithm. Under the terms being advocated by Trump, there would still be some minor stakes for China or ByteDance, but the primary control would shift to American hands. Lutnick emphasized that, "Americans will own the technology, and Americans will control the algorithm." Despite these pressures, ByteDance's board has argued that U.S. national security concerns could be addressed without necessitating a full sale of the app. Bill Ford, a member of ByteDance’s board, noted earlier this year at the World Economic Forum that alternative arrangements could be made to ensure compliance with U.S. laws without divesting the app or its core algorithm. At this juncture, however, Lutnick indicated that the U.S. is firm on its stance regarding control over TikTok's recommendation algorithm, which is critical to the app's global appeal. ByteDance's reluctance to part with this intellectual property may be a significant hurdle in reaching a resolution.