The House China committee leaders stated that a forced sale of TikTok, labeled a national security risk, could occur before the November election, following the House passing a bill to block TikTok from U.S. app stores if its Chinese-linked parent company, Bytedance, does not divest within 165 days. Concerns about the Chinese government's potential access to user data have fueled the push for separation, with bipartisan support in the House and positive conversations in the Senate, where the bill now moves.
The House-passed bill requiring ByteDance to sell TikTok within 180 days faces significant challenges, including financial, technical, and geopolitical obstacles, making a sale unlikely. The complex transaction, potentially valued at over $100 billion, would require navigating legal challenges, resistance from China, and potential antitrust scrutiny. Potential buyers, including former treasury secretary Steven Mnuchin and tech executives, may face difficulties in assembling the necessary funds and navigating regulatory hurdles. The forced sale also raises concerns about retaliation against U.S. companies in China and the potential impact on TikTok's global operations and workforce.
China has stated that it "firmly opposes" a potential forced sale of TikTok's US operations, as the Trump administration has raised national security concerns over the app's Chinese ownership. The statement comes as Microsoft is reportedly in talks to acquire TikTok's US operations, with President Trump stating that he will ban the app in the US if a deal is not reached by September 15th.
