United States President Donald Trump signaled on Thursday that he can offer import tariffs on Chinese products if Beijing selves Tiktok-now under control of Chinese bytedance-for US investors. The information is from Financial Times.
“China will probably say ‘let’s approve the deal, but would you do something about the tariffs?'” Trump said aboard Air Force One, according to the publication. “Tariffs give us great negotiation power.”
The statement occurs a day after Trump announced new “reciprocal” fares against dozens of countries, including a 34% increase on Chinese products – which adds to a previous rate of 20% imposed this year.
The sale of Tiktok is a requirement of the US Congress -approved legislation last year, which imposed on bytedance the obligation to get rid of the app control, at risk of national ban. Trump extended the deadline for the demobilization of the operation until this Saturday.
The main concern of congressmen and national security authorities revolves around the potential of influence of the Chinese government about the platform algorithm and the risk of collecting personal data from American users.
According to Financial Timesthe US government evaluates a proposal to transform Tiktok into an independent US entity with the majority participation of US investors.
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The structure studied includes the participation of giants such as Blackstone, Silver Lake, as well as names that are already shareholders of Tiktok, such as General Atlantic, Susquehanna, KKR and Coatue. Bytedance, in turn, would maintain less than 20% of the new business – meeting the legal requirements that limit foreign control in companies considered strategic.
An impasse, however, remains control of the platform algorithm. One of the alternatives discussed would be to maintain the development of technology with Bytedance, but allow the American group to have licensing access. The solution, however, is criticized by harder republican sectors and national security jurists.
Still according to the Financial Timescompanies like Oracle should be responsible for the data security of Tiktok’s American operation.
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The China embassy in Washington and bytedance representatives have not commented on the case so far.
