China remained prominently quiet after President Donald Trump received approval for a deal that would allow Tiktok to live in the US on Thursday.
Social media debate was limited, but Chinese state media remained silent about the deal. The Wybo account, who belonged to a nation, cited a professor at the University of Hudan. He described the agreement as “win-win” of both countries.
While signing an executive order on the contract, Trump said China’s President Xi Jinping had “move ahead.”
As there was no representative for the ordinance at the time of signing, Singapore’s Baitedan and the Chinese Embassy did not respond to CNBC’s request for comment.
Meanwhile, specific details of the transaction remain unknown. On Friday, Chinese media outlet LastPost reported that Tiktok US’s business will be split into two companies, citing an unknown source.
Laid out in Trump’s executive order on Thursday, the new joint venture will oversee Tiktok’s US business, data and algorithms as the China-based owner’s ordinance holds less than 20% stake.
According to the order, this would meet the requirements of the US National Security Act, which requires Tiktok to leave the US business or face an effective domestic ban.
Bytedance will cite an anonymous source to establish a new US company responsible for managing e-commerce, brand advertising and relationships with Tiktok’s international operations.
Tiktok’s fate in the United States has long been in balance. Lawmakers from both major political parties warn that Beijing will have access to sensitive data or use tiktok to influence public opinion.
According to the Pew Research Survey, released Friday, the fifth adult American has received Tiktok news regularly, starting from just 3% in 2020.
Earlier this year, the Supreme Court upheld a law banning apps unless Batedans sells it. The first deadline was January, but Trump extended the deadline multiple times through an executive order as he asked for a deal.
Trump first said Xi approved Tiktok’s proposal earlier this month after receiving a nearly two-hour call with Chinese leaders. However, the reading of the call from Beijing appeared to be talking slightly differently.
XI said his government is “pleasant to see that productive commercial negotiations in line with market rules will comply with Chinese laws and regulations and lead to solutions that take into account the interests of both parties.”
Xi also called on the US to “restrain unilateral trade restrictions” and “provide an open, fair and non-discriminatory environment for Chinese investors.”
The latest Tiktok negotiations are occurring in the hopes of the platform being used as a negotiation point amid wider trade talks between Washington and the US.
However, some experts have recently told CNBC that China has little incentive to allow the sale of refunds.
Additionally, potential US transactions could also face legal challenges if they contradict the terms of sale of Tiktok or van laws that were upheld by the Supreme Court in January.
Speaking on CNBC’s “Scokebox Asia” on Friday, JP Morgan’s James Sullivan said Trump’s proposed tictok deal lacked a clear lack of who controls the algorithm, and national security concerns were widespread.
