Chinese officials are weighing the US TikTok proposal

Look, I’m not saying TikTok will likely be banned in the US later this month, but…

While reports suggested just before Christmas that a US TikTok deal had been signed, which would ensure the app would remain operational in America, with a local version of the platform to be sold under American ownership, Chinese officials’ statements about any deal sound much less definitive, and much more like there are things that need to be finalized before such a deal can take effect.

As a quick recap, on December 18, reports circulated that after nearly a year of negotiations, TikTok’s management had informed its US staff that a deal had been signed and that TikTok’s US operations would continue after being sold to an Oracle-led consortium that would oversee US operations.

TikTok was technically banned in the US starting January 19, 2025, as part of the Senate-approved “Protecting Americans from the Foreign Adversary Controlled Applications Act.” But upon his inauguration as president on January 20, President Trump issued an Executive Order to halt implementation of the bill, giving his team a chance to potentially renegotiate the details.

Trump has since issued four more Executive Orders to pause the action, and in September, Trump and his team held a press conference to announce that they had “rescued” TikTok in the US by making a viable offer to Chinese officials to secure the sell-out of the platform’s local operations.

But Chinese officials said nothing, and in December it still seemed like no deal was in the works, despite White House assurances.

But then, as noted, just before Christmas, there seemingly was a breakthrough, with TikTok’s CEO Shou Zi Chew sends an email to staff informing them of the deal, which will take effect on January 22, 2026, a day before President Trump’s term expires. fourth executive order to stop the implementation of the bill.

So all good, right? TikTok is negotiating a sale to a U.S. entity, meeting the requirements of the law, and TikTok will continue to operate for its millions of U.S. users.

Good…

Chinese state media released a statement on the reported deal on December 25, which sounds a lot less certain than previous reports.

As reported by China daily:

“The Chinese government hopes that relevant parties around TikTok can find a solution that complies with Chinese laws and regulations and achieves a balance of interests.”

So not exactly a done deal then.

“In order to implement the important consensus reached during the telephone call between the heads of state of China and the United States, the economic and trade teams of both sides previously reached a basic framework consensus on how to properly resolve issues such as TikTok through cooperation, based on mutual respect and equal consultation, the [Chinese government] spokesperson said.”

The spokesperson further “expressed the hope” that US negotiators will “seriously fulfill” their commitments as expressed in their negotiations.

“The spokesperson also urged the US to provide a fair, open, transparent and non-discriminatory business environment for the continued and stable operation of Chinese enterprises in the United States, so as to promote the stable, healthy and sustainable development of China-US economic and trade relations.”

So it seems the Chinese government is still unhappy about being forced to sell a Chinese company at the discretion of the US government, and is looking for more assurances that this won’t happen again.

That could mean a TikTok deal goes through, but TikTok owner ByteDance hasn’t made an official statement yet, and the Chinese government’s notes above sound like they’re still weighing the details and seeking further assurances before giving the green light.

So while it seemed like we’d reached the end of the long-running TikTok-American saga, which has been going on in earnest since Trump issued an initial Executive Order banning TikTok in 2020 (partly in retaliation for the spread of COVID), we could still see another extension, or even a ban on the app, when the final extension takes place on the 23rd of this month.

I’m not saying this will happen, but reading the official statements I have less confidence in the deal going through than others.