TikTok restored its operations in the United States on Sunday after a brief shutdown as a law banning the app on national security grounds came into effect. The platform thanked President-elect Donald Trump, set to retake office on Monday, for facilitating the turnaround. This comes after the Biden administration stated it would not enforce the ban.
TikTok had ceased operations late Saturday, facing a deadline for its Chinese parent company, ByteDance, to sell its U.S. subsidiary to non-Chinese owners. Millions of users were left dismayed as they found themselves locked out of the app.
Earlier Sunday, Trump announced an executive order delaying the ban to allow time to "make a deal." He further proposed that the United States take a partial ownership stake in TikTok, suggesting the app's value could grow exponentially.
"I would like the United States to hold a 50 percent ownership stake in a joint venture," Trump wrote on his Truth Social platform, emphasizing that such a move would secure TikTok while ensuring it remained under trusted management.
TikTok, in a statement posted on X (formerly Twitter), confirmed the restoration of its services, expressing gratitude to Trump for providing "the necessary clarity and assurance" to its service providers.
China Responds
In Beijing, the Chinese Foreign Ministry urged Washington to heed "rational voices" regarding the ban. Spokeswoman Mao Ning emphasized China's commitment to data privacy and security, stating, "We have never and will not ask companies or individuals to collect or provide foreign data in violation of local laws."
TikTok, which resumed operations in the U.S. by Sunday afternoon, did not address Trump's suggestion of partial American ownership.
Analysts Weigh In
Dan Ives, an analyst with Wedbush Securities, called the development "a big win for TikTok and a political win for Trump," likening the negotiations to "high-stakes poker between the U.S. and China."
At a rally in Washington Sunday evening, Trump reiterated his support for TikTok, citing job preservation and his desire to keep business within the U.S. "We have to save it," he told supporters, highlighting the app's economic impact.
Despite ByteDance’s refusal to sell, the law provides a 90-day delay in enforcement if the White House demonstrates progress toward a resolution. However, experts caution that reversing the ban may be challenging without a sale.
The Ban and Its Implications
The legislation, upheld by the U.S. Supreme Court on Friday, mandates app store operators Apple and Google to block new TikTok downloads. Noncompliance could result in penalties of $5,000 per user. Oracle, which hosts TikTok’s servers, would also be required to enforce the ban.
International Reactions
In Europe, Estonia’s Foreign Minister Margus Tsahkna praised the suspension, urging similar action across the continent. Meanwhile, at the Australian Open, American tennis player Coco Gauff made headlines by writing "RIP TikTok U.S." on a courtside camera after a victory.
The situation sparked tensions domestically, with a man in Wisconsin accused of setting fire to an unoccupied building tied to a Congressional office. Police cited frustration over discussions of a TikTok ban as a potential motive.
Potential Deals
A last-minute proposal from Perplexity AI, a U.S.-based start-up, suggested a merger with TikTok's American operations. Sources estimated the deal could cost upwards of $50 billion, although no formal terms were disclosed.
As the situation evolves, TikTok remains a focal point in debates over data security, international relations, and tech industry regulation.
.webp)
0 Comments