President Donald Trump confirmed Wednesday that a potential deal to spin off the U.S. assets of TikTok remains “on the table,” despite recent delays.
This comes after he extended the deadline for China-based ByteDance to divest TikTok’s U.S. operations or face a ban. The new deadline for a deal is set for June 19, after two previous reprieves from enforcement of the initial ban, which was originally due in January.
Trump defended the proposed deal, noting that it involves “very good people” and “very rich companies” that would handle the U.S. assets effectively. However, he emphasized that the outcome depends on the resolution of ongoing trade tensions with China.
“It’s on the table, very much,” he told reporters in the Oval Office.
Despite the potential deal, several U.S. Senators, including Democrats Mark Warner and Ed Markey, have criticized the proposal. They argue that Trump lacks the legal authority to extend the deadline and questioned the legality of the reported deal, which they believe may not satisfy the requirements of U.S. law.
Markey also attempted to pass legislation extending the deadline until October but was blocked in the Senate.
Senate Intelligence Committee Chairman Tom Cotton raised concerns over potential American investors buying into TikTok, stressing that they must sever all ties with China to comply with U.S. laws. He warned that Congress would not offer legal protection to anyone attempting to navigate the complexities of doing business with the Chinese government.
A significant hurdle for any deal remains Chinese government approval, which is necessary for the divestiture to proceed.
The law mandating TikTok to cease operations by January 19 unless ByteDance had completed the divestiture was not enforced, allowing the app to remain active. The Justice Department later informed Apple and Google that it would not enforce the law, enabling TikTok to restore its app for new downloads.
As the June 19 deadline approaches, all eyes remain on the progress of the deal and its potential impact on U.S.-China relations.
