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China Responds to Trump’s Proposal for 50% U.S. Ownership of TikTok

China’s foreign ministry on Monday emphasized that companies should be allowed to make independent decisions regarding their operations and business deals, in response to U.S. President-elect Donald Trump’s suggestion of a 50% U.S. ownership stake in TikTok.

Key Points:

  • China’s Position: The Chinese government reiterated that businesses should retain autonomy over their operations and decisions, regardless of foreign government interventions or proposals. This statement came in light of Trump’s recent proposal for a U.S.-based ownership structure for the popular short-video platform TikTok, which has raised national security concerns in the U.S.
  • Trump’s Proposal: The former U.S. president suggested that a 50% U.S. ownership in TikTok could address security and data privacy concerns raised by his administration, particularly due to TikTok’s Chinese ownership.
  • Political Tensions: The exchange underscores the growing geopolitical tensions between China and the U.S., with both sides asserting their interests in the operations of global tech companies. China’s response signals its opposition to external interference in the business decisions of Chinese firms.

Tech Billionaires, CEOs, and Foreign Diplomats Attend Trump’s Inauguration

Several high-profile tech billionaires, CEOs, and international figures attended U.S. President Donald Trump’s inauguration ceremony on Monday. The event saw prominent figures like Elon Musk, Mark Zuckerberg, Jeff Bezos, and Mukesh Ambani, among others, marking a key moment for the world’s wealthiest and most influential individuals.

Notable Inauguration Day Attendees

  • Elon Musk (Tesla, SpaceX, X): The world’s richest man, Musk, played a significant role in supporting Trump’s election campaign and is now expected to lead initiatives aimed at improving U.S. government efficiency.
  • Shou Zi Chew (TikTok): TikTok’s CEO attended after Trump helped restore the app’s U.S. service, following concerns about its Chinese ownership.
  • Mark Zuckerberg (Meta Platforms): Zuckerberg has worked to mend relations with the Trump administration, especially after scaling back certain content moderation policies that were criticized by conservative supporters.
  • Miriam Adelson: The casino magnate and major Trump supporter helped fund Trump’s super PAC, which supported his first presidential campaign.
  • Mukesh Ambani (Reliance Industries): The Indian billionaire and head of the conglomerate Reliance Industries also attended, strengthening ties with the U.S. business and political scene.
  • Bernard Arnault and the Arnault Family (LVMH): LVMH’s CEO and his family, known as France’s wealthiest, attended, underscoring their global influence in the luxury goods sector.
  • Jeff Bezos (Amazon): Amazon’s founder and chair, along with his fiancée Lauren Sanchez, arrived at the ceremony, with Bezos continuing to play a significant role in media and tech.
  • Sundar Pichai (Google): Pichai represented Alphabet (Google), a company that had also contributed $1 million to Trump’s inaugural fund.
  • Boris Johnson (Former UK Prime Minister): The former British Prime Minister, dubbed “Britain Trump” by Trump himself, attended the ceremony and continued his strong stance on Ukrainian support.

TikTok Restores US Access After Trump’s Intervention

After a brief shutdown, TikTok began restoring its services in the United States on Sunday, following an intervention by President-elect Donald Trump. The Chinese-owned app, which had been inaccessible for U.S. users since late Saturday, was partially reinstated after Trump’s announcement at a rally that he would ensure the app’s revival upon taking office.

Trump’s Role in TikTok’s Return

  • Trump’s Statement: “We have no choice. We have to save it,” Trump declared at the rally, expressing his intention to seek a joint venture involving TikTok to maintain U.S. access.
  • TikTok’s Acknowledgment: In a message to users, TikTok confirmed that service had been restored as a result of Trump’s efforts. The app thanked the President for clarifying that service providers would face no penalties for supporting TikTok’s operation in the U.S., which supports millions of American users and small businesses.

Background and Reversal of Stance

TikTok’s return marks a significant policy reversal for Trump, who in 2020 sought to ban the app over concerns about national security, specifically the potential misuse of American user data by TikTok’s parent company, ByteDance. In the wake of those concerns, Trump previously sought a sale of TikTok’s U.S. operations but ultimately signaled a preference for a partnership rather than a full divestiture.

However, Trump’s relationship with TikTok has evolved, especially after he credited the app for helping him engage with younger voters in the 2024 election. This shift in stance has drawn mixed reactions, particularly from within his own party.

Political and Legal Tensions

  • Republican Opposition: Some Republican lawmakers, including Senators Tom Cotton and Pete Ricketts, have criticized Trump’s efforts to sidestep the law. They insist that TikTok should comply with the legal requirements set forth, including a full divestment from ByteDance.
  • U.S.-China Relations: The TikTok saga occurs amid ongoing tensions between the U.S. and China, with Trump’s administration promising to impose tariffs on China while also seeking closer communication with Chinese leadership.

Impact on Users and Businesses

TikTok’s brief shutdown led to a surge in search traffic for VPNs as users sought ways to bypass the restrictions. Social media influencers and marketing firms who rely on TikTok’s platform expressed concern over the potential loss of income and audience engagement. Many users feared losing access to their TikTok Shop purchases.

The Future of TikTok in the U.S.

As of now, the app is operational, but questions remain about its long-term status in the U.S. Talks about a potential sale or restructuring continue, with some reports indicating interest from figures like Elon Musk and Frank McCourt in acquiring TikTok’s U.S. operations. Additionally, U.S. search engine startup Perplexity AI has reportedly submitted a bid to merge with TikTok’s U.S. business.

The situation remains fluid, with several major players, including potential investors, closely watching the unfolding developments.