Trump, Who Promised To Save TikTok, Threatens To Shut Down TikTok

An anonymous reader quotes a report from Ars Technica: Donald Trump vowed to save TikTok before taking office, claiming only he could make a deal to keep the app operational in the US despite national security concerns. But then, he put Vice President JD Vance in charge of the deal, and after months of negotiations, the US still doesn't seem to have found terms for a sale that the Chinese government is willing to approve. Now, Trump Commerce Secretary Howard Lutnick has confirmed that if China won't approve the latest version of the deal -- which could result in a buggy version of TikTok made just for the US -- the administration is willing to shut down TikTok. And soon.

On Thursday, Lutnick told CNBC that TikTok would stop operating in the US if China and TikTok owner ByteDance won't sell the app to buyers that Trump lined up, along with control over TikTok's algorithm. Under the deal Trump is now pushing, 'China can have a little piece or ByteDance, the current owner, can keep a little piece,' Lutnick said. 'But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm.' However, ByteDance's board has long maintained that the US can alleviate its national security fears -- that China may be using the popular app to manipulate and spy on Americans -- without forcing a sale. In January, a ByteDance board member, Bill Ford, told World Economic Forum attendees that a non-sale option 'could involve a change of control locally to ensure' TikTok 'complies with US legislation' without selling off the app or its algorithm.

At this point, Lutnick suggested that the US is unwilling to bend on the requirement that the US control the recommendation algorithm, which is viewed as the secret sauce that makes the app so popular globally. ByteDance may be unwilling to sell the algorithm partly because then it would be sharing its core intellectual property with competitors in the US. Earlier this month, Trump had claimed that he wasn't 'confident' that China would approve the deal, even though he thought it was 'good for China.' Analysts have suggested that China views TikTok as a bargaining chip in its tariff negotiations with Trump, which continue to not go smoothly, and it may be OK with the deal but unwilling to release the bargaining chip without receiving key concessions from the US. For now, the US and China are enjoying a 90-day truce that could end in August, about a month before the deadline Trump set to sell TikTok in mid-September.

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