TikTok must be sold to a U.S.-approved buyer by Sept. 17, or it will be shut down in the United States. Commerce Secretary Howard Lutnick announced the decision on Thursday, July 24, during an appearance on CNBC.
“We’ve made the decision. You can’t have Chinese control and have something on 100 million American phones. That’s just not, that’s just not okay,” Lutnick said.
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TikTok, the popular short video app, is owned by the Chinese company ByteDance. The U.S. government has raised national security concerns, fearing the Chinese government could access user data or influence content.
China must approve the sale
The Chinese government would have to approve the sale of TikTok to a non-Chinese buyer. If China refuses, TikTok might be banned or forced to shut down in the U.S.
“So if it’s in American control, and you know, China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control, Americans will own the technology and Americans will control the algorithm,” Lutnick said.
Legislation passed with bipartisan support
In January, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act with strong bipartisan support, and President Joe Biden signed the legislation into law.
The law requires TikTok to divest or face a ban in the United States. President Trump has extended the deadline three times, most recently signing an executive order in June, keeping TikTok running in America for another 90 days.
China previously blocked sale
Before Trump signed the executive order, there was a plan to make TikTok a mostly American-owned company. However, after Trump announced plans to heavily tax Chinese imports, China pushed back by refusing to allow TikTok to be sold.
Lutnick said the proposed deal to sell TikTok is currently in the hands of the Chinese government for approval.
“If that deal gets approved by the Chinese, then that deal will happen. If they don’t approve it, then TikTok is going to go dark, and those decisions are coming very soon,” Lutnick said.
TikTok has not commented on Lutnick’s remarks.
