China has addressed U.S. president-elect Donald Trump’s recent call for TikTok to transfer 50% ownership to American entities, emphasizing that corporate acquisitions should be guided by market principles and legal frameworks. The statement comes between escalating tensions over TikTok’s ties to its Chinese parent company, ByteDance, as a federal ban law takes effect in the United States, rendering the app inaccessible nationwide.
Mao Ning, a spokeswoman for China’s Ministry of Foreign Affairs, emphasized during a press conference in Beijing that decisions regarding corporate operations and acquisitions should remain independent and market-driven. “For actions involving corporate operations and acquisitions, we consistently believe such decisions should be made independently by companies based on market principles,” Mao stated. She also highlighted that any involvement of Chinese companies must comply with domestic laws and regulations.
Mao further pointed out TikTok’s longstanding popularity and significant user base in the United States. “We hope the United States can listen to rational voices and foster an open, fair, and non-discriminatory business environment for all market players,” she said.
President-elect Donald Trump announced on Sunday his intention to temporarily block a nationwide TikTok ban through an executive order, extending the timeline for compliance with the new law. He expressed a preference for resolving the app’s future through a joint venture that would grant the U.S. a 50% ownership stake, asserting that such a move would secure TikTok’s continued operation in the U.S. “Without U.S. approval, there is no TikTok. With our approval, it is worth hundreds of billions of dollars – maybe trillions,” Trump declared.
The TikTok divestment law, passed by Congress in April and signed by outgoing President Joe Biden, permits a 90-day extension for a sale if progress is evident. Despite this, no potential buyers have been announced, and ByteDance has firmly stated it does not intend to sell TikTok. The debate took an interesting turn with comments from tech mogul Elon Musk, owner of X (formerly Twitter).
Musk criticized the TikTok ban as a violation of free speech but noted the imbalance in digital access between the U.S. and China. “TikTok operates freely in America, but X isn’t allowed in China. This is unbalanced and must change,” Musk wrote on X. In response, Mao reiterated that China regulates internet access according to its laws and is open to companies that abide by its regulatory framework.
Mao highlighted TikTok’s positive contributions to the U.S. economy, particularly in job creation and consumer engagement. The platform, which launched an integrated e-commerce feature in 2023, has significantly boosted retail activity.
As discussions continue, the future of TikTok remains uncertain. ByteDance has yet to respond to Trump’s proposal, while the broader implications of this dispute could shape U.S.-China tech relations and regulatory practices in the coming years.
