Trump’s Firm Stance on TikTok Influenced U.S.-China Deal Negotiations
Treasury Secretary Scott Bessent disclosed Tuesday that President Donald Trump’s readiness to allow TikTok to cease operations in the United States played a decisive role in advancing a deal framework with China concerning the popular social media app.
Speaking on CNBC’s “Squawk Box,” Bessent said, “President Trump made it clear that he would have been willing to let TikTok go dark, that we were not going to give up national security in favor of the deal.” This uncompromising position reportedly shifted negotiations, reinforcing U.S. priorities amid ongoing concerns over data security and Chinese ownership.
Extension of Divestiture Deadline
On the same day, the White House announced an extension of the deadline for TikTok’s parent company, ByteDance, to divest its U.S. operations until December 16. During this period, the Department of Justice will refrain from enforcing the law that mandates either divestiture or a shutdown of TikTok in the U.S.
This marks the fourth extension since the original deadline, which was most recently set for September 17. The prolongation reflects the complexities involved in finalizing a transaction that satisfies both regulatory scrutiny and geopolitical considerations.
Deal Progress and Trade Tensions
Bessent noted that the commercial terms between ByteDance and prospective U.S. investors have been essentially settled since March or April 2025. However, following President Trump’s announcement of significant tariffs on April 2, China paused the deal negotiations.
Trump’s broader trade policies, including tariffs and restrictions on semiconductor technology exports, have strained U.S.-China relations. Despite these tensions, the TikTok agreement could represent a rare point of convergence, with Trump and Chinese President Xi Jinping scheduled to discuss the deal imminently.
“We were able to reach a series of agreements, mostly for things we will not be doing in the future that have no effect on our national security,” Bessent said, indicating progress on concessions outside the core national security concerns.
U.S. Ownership Prospects
While Trump expressed willingness to let TikTok cease operations if necessary, the White House has also embraced the platform, launching its own TikTok account last month and amassing nearly one million followers.
Trump remarked, “The kids wanted it so badly… I had parents calling me up. They don’t want it for themselves. They want it for their kids. They say if I don’t get it done, they’re in big trouble with their kids.” This underscores TikTok’s cultural significance in the U.S. despite security concerns.
Several potential U.S. buyers have been mentioned, with Trump publicly supporting figures such as Oracle Chairman Larry Ellison and Tesla CEO Elon Musk. Recent reports from CBS News and Reuters indicate Oracle is a leading candidate, given its existing role in TikTok’s web infrastructure and cloud services.
The White House is reportedly coordinating a deal involving Oracle and a consortium of investors to assume control of TikTok’s U.S. operations, with Oracle expected to manage data collection and software updates.
FinOracleAI — Market View
The extension of TikTok’s divestiture deadline and the nearing finalization of a deal framework between ByteDance and U.S. investors reduce immediate regulatory uncertainty. Treasury Secretary Bessent’s comments highlight a firm U.S. stance prioritizing national security, which may reassure investors wary of geopolitical risks. However, trade tensions and potential delays in final approvals remain risks. Market participants should monitor upcoming talks between Trump and Xi Jinping and any regulatory developments regarding ownership structure.
Impact: neutral
