U.S. President Donald Trump, who has ordered a ban of Chinese video-sharing app TikTok unless it is bought by a domestic company, said he will not extend the deadline given for its parent ByteDance Ltd. to sell TikTok’s U.S. assets.
Trump, before leaving for a campaign trip to Michigan, said, “We’ll either close up TikTok in this country for security reasons, or it will be sold. There will be no extension of the TikTok deadline.”
It was on August 6 that Trump signed the Executive Order to ban TikTok, along with another Chinese firm WeChat, citing a threat to national security, foreign policy, and economy of the United States.
Trump earlier said he wanted a deal by September 15, while the executive order gives a 45-day time till September 20. Meanwhile, the Committee on Foreign Investment in the United States or CFIUS requires sale of TikTok assets by mid-November.
Meanwhile, Bloomberg reported, citing people familiar with the matter, that ByteDance is most likely to miss the deadline for a sale, following new Chinese regulations. Chinese officials reportedly requires any proposal to be submitted for approval with detailed information about technical and financial issues, and the review is expected to take time.
Tech major Microsoft Corp. in a partnership with Walmart Inc. has submitted a proposal for TikTok’s U.S. operations. Oracle also has submitted a bid, while final negotiations are yet to be known.
The U.S. companies continue to express interest in TikTok despite the new Chinese requirement, Bloomberg added.
TikTok has already filed a lawsuit in federal court challenging the Administration’s ban order, taking strong exception to the allegation that the company is a national security threat.
Amid these developments, TikTok’s Kevin Mayer, who took charge as Chief Executive Officer on June 1, resigned, replaced by TikTok, General Manager Vanessa Pappas.
TikTok is already banned by India citing threat to national security, while the company earlier decided to exit Hong Kong market after China established a new national security law for the semi-autonomous city.
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