TikTok App US Sale Update: Trump Says He Has a Buyer – But Will China Agree to the Deal?

President Donald Trump says a deal to sell TikTok's US operations is in place, but as per the latest reports, the biggest obstacle isn't finding a buyer; it's getting Beijing to sign off.

'We have a buyer for TikTok,' Trump told Fox News last week. 'I'll tell you in two weeks.' He added that the prospective buyers are 'very, very wealthy people,' without naming them, and predicted that China would 'probably' agree to the sale.

However, behind the scenes, negotiations remain stalled, not due to a lack of interest from investors but rather to hesitation from the Chinese government. According to sources familiar with the talks, Chinese President Xi Jinping is holding off on approving any sale until he can use TikTok as leverage in broader trade negotiations with the White House.

Beijing Holding the Cards

'There will be no sale of TikTok to American investors,' a source familiar with the discussions told On The Money, 'until Chinese President Xi Jinping is confident he has extracted as much as he can in terms of a favourable trade deal with the White House.'

Despite Trump's public optimism about the deal, the source claimed, 'Trump still doesn't have a seller,' adding that 'Xi is a no-show' in the ongoing discussions.

If this is the case, China's strategy appears to be to treat TikTok as a bargaining chip. Beijing is fully aware that Trump wants to keep the app operational in the US, especially after his 2024 election victory, where TikTok was seen as helping him reach younger voters. Hence, one can expect that it won't be a very smooth deal.

The National Security Context

TikTok's future in the US has been uncertain for over a year.

In 2024, Congress passed a bipartisan law that required TikTok's parent company, ByteDance, to divest its American operations or face a ban on the platform in the US. The legislation, citing national security concerns, was signed by then-President Joe Biden and upheld by the Supreme Court earlier this year.

At issue is TikTok's algorithm, the powerful technology that feeds users personalised content. US lawmakers argue that even partial Chinese ownership leaves Americans vulnerable to potential surveillance.

However, ByteDance denies this, but the company's refusal to give up the algorithm has been a key sticking point in past negotiations.

A Delayed Ban, For Now

The official deadline for TikTok's US shutdown was initially January 19, 2025, just a day before Trump's second-term inauguration. However, the president issued an executive order pausing enforcement of the law.

Since then, Trump has extended the deadline twice, with the latest extension set to expire on September 17.

'We are grateful for President Trump's leadership and support in ensuring that TikTok continues to be available,' the company said in a statement last month, highlighting that over 170 million Americans and 7.5 million US businesses rely on the platform.

Next Steps and a Tight Timeline

On Friday, Trump told the media that formal talks with China will resume 'Monday or Tuesday' this week, with hopes of pushing the deal over the finish line. 'President Xi and I have a great relationship, and I think it's good for them,' he said. 'I think the deal is good for China, and it's good for us.'

In parallel, TikTok is reportedly developing a US-specific version of its platform, possibly to appease regulators. According to a report by The Information, the company aims to launch the new version in early September ahead of the ban deadline.

In the meantime, TikTok continues to operate as normal in the US. However, whether it will survive in the country under new ownership depends not only on business negotiations but also on the political calculus between Washington and Beijing.