bytedance

TikTok deal is done; Trump wants praise while users fear MAGA tweaks

bytedance, china, Donald Trump, Policy, tiktok, us-china trade war / Kris Guyer / January 23, 2026

US will soon retrain TikTok

“I am so happy”: Trump closes deal that hands TikTok US to his allies.

The TikTok deal is done, and Donald Trump is claiming a win, although it remains unclear if the joint venture he arranged with ByteDance and the Chinese government actually resolves Congress’ national security concerns.

In a press release Thursday, TikTok announced the “TikTok USDS Joint Venture LLC,” an entity established to keep TikTok operating in the US.

Giving Americans majority ownership, ByteDance retains 19.9 percent of the joint venture, the release said, which has been valued at $14 billion. Three managing investors—Silver Lake, Oracle, and MGX—each hold 15 percent, while other investors, including Dell Technologies CEO Michael Dell’s investment firm, Dell Family Office, hold smaller, undisclosed stakes.

Americans will also have majority control over the joint venture’s seven-member board. TikTok CEO Shou Chew holds ByteDance’s only seat. Finalizing the deal was a “great move,” Chew told TikTok employees in an internal memo, The New York Times reported.

Two former TikTok employees will lead the joint venture. Adam Presser, who previously served as TikTok’s global head of Operations and Trust & Safety, has been named CEO. And Kim Farrell, TikTok’s former global head of Business Operations Protection, will serve as chief security officer.

Trump has claimed the deal meets requirements for “qualified divestiture” to avoid a TikTok ban otherwise required under the Protecting Americans from Foreign Adversary Controlled Applications Act. However, questions remain, as lawmakers have not yet analyzed the terms of the deal to determine whether that’s true.

The law requires the divestment “to end any ‘operational relationship’ between ByteDance and TikTok in the United States,” critics told the NYT. That could be a problem, since TikTok’s release makes it clear that ByteDance will maintain some control over the TikTok US app’s operations.

For example, while the US owners will retrain the algorithm and manage data security, ByteDance owns the algorithm and “will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing.” The Trump administration seemingly agreed to these terms to ensure that the US TikTok isn’t cut off from the rest of the world on the app.

“Interoperability enables the Joint Venture to provide US users with a global TikTok experience, ensuring US creators can be discovered and businesses can operate on a global scale,” the release said.

Perhaps also concerning to Congress, Slate noted, while ByteDance may be a minority owner, it remains the largest individual shareholder.

Michael Sobolik, an expert on US-China policy and senior fellow at the right-leaning think tank the Hudson Institute, told the NYT that the Trump administration “may have saved TikTok, but the national security concerns are still going to continue.”

Some critics, including Republicans, have vowed to scrutinize the deal.

On Thursday, Senator Edward Markey (D-Mass.) complained that the White House had repeatedly denied requests for information about the deal. They’ve provided “virtually no details about this agreement, including whether TikTok’s algorithm is truly free of Chinese influence,” Markey said.

“This lack of transparency reeks,” Markey said. “Congress has a responsibility to investigate this deal, demand transparency, and ensure that any arrangement truly protects national security while keeping TikTok online.”

In December, Representative John Moolenaar (R-Mich.), chair of the House Select Committee on China, said that he wants to hold a hearing with TikTok leadership to discuss how the deal addresses national security concerns. On Thursday, Moolenaar said he “has two specific questions for TikTok’s new American owners,” Punchbowl News reported.

“Can we ensure that the algorithm is not influenced by the Chinese Communist Party?” Moolenaar said. “And two, can we ensure that the data of Americans is secure?”

Moolenaar may be satisfied by the terms, as the NYT suggested that China hawks in Washington appeared to trust that Trump’s arrangement is a qualified divestiture. TikTok’s release said that Oracle will protect US user data in a secure US cloud data environment that will regularly be audited by third-party cybersecurity experts. The algorithm will be licensed from ByteDance and retrained on US user data, the release said, and Vice President JD Vance has confirmed that the joint venture “will have control over how the algorithm pushes content to users.”

Last September, a spokesperson for the House China Committee told Politico that “any agreement must comply with the historic bipartisan law passed last year to protect the American people, including the complete divestment of ByteDance control and a fully decoupled algorithm.”

Users brace for MAGA tweaks to algorithm

“I am so happy to have helped in saving TikTok!” Trump said on Truth Social after the deal was finalized. “It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.”

However, it’s unclear to TikTokers how the app might change as Trump allies take control of the addictive algorithm that drew millions to the app. Lawmakers had feared the Chinese Communist Party could influence the algorithm to target US users with propaganda, and Trump’s deal was supposed to mitigate that.

Not only do critics worry that if ByteDance maintains ownership of the algorithm, it could allow the company to continue to influence content, but there is now concern that the app’s recommendations could take a right-leaning slant under US control.

Trump has already said that he’d like to see TikTok go “100 percent MAGA,” and his allies will now be in charge of “deciding which posts to leave up and which to take down,” the NYT noted. Anupam Chander, a law and technology professor at Georgetown University, told the NYT that the TikTok deal offered Trump and his allies “more theoretical room for one side’s views to get a greater airing.”

“My worry all along is that we may have traded fears of foreign propaganda for the reality of domestic propaganda,” Chander said.

For business owners who rely on the app, there’s also the potential that the app could be glitchy after US owners start porting data and retraining the algorithm.

Trump clearly hopes the deal will endear him to TikTok users. He sought praise on Truth Social, writing, “I only hope that long into the future I will be remembered by those who use and love TikTok.”

China “played” Trump, expert says

So far, the Chinese government has not commented on the deal’s finalization, but Trump thanked Chinese President Xi Jinping in his Truth Social post “for working with us and, ultimately, approving the Deal.”

“He could have gone the other way, but didn’t, and is appreciated for his decision,” Trump said.

Experts have suggested that China benefits from the deal by keeping the most lucrative part of TikTok while the world watches it export its technology to the US.

When Trump first announced the deal in September, critics immediately attacked him for letting China keep the algorithm. One US advisor close to the deal told the Financial Times that “Trump always chickens out,” noting that “after all this, China keeps the algorithm.”

On Thursday, Sobolik told Politico that Trump “got played” by Xi after taking “terrible advice from his staff” during trade negotiations that some critics said gave China the upper hand.

Trump sees things differently, writing on Truth Social that the TikTok deal came to “a very dramatic, final, and beautiful conclusion.”

Whether the deal is “dramatic,” “final,” or “beautiful” depends on who you ask, though, as it could face legal challenges and disrupt TikTok’s beloved content feeds. The NYT suggested that the deal took so long to finalize that TikTokers don’t even care anymore, while several outlets noted that Trump’s deal is very close to the Project Texas arrangement that Joe Biden pushed until it was deemed inadequate to address national security risks.

Through Project Texas, Oracle was supposed to oversee TikTok US user data, auditing for security risks while ByteDance controlled the code. The joint venture’s “USDS” “coinage even originated from Project Texas,” Slate noted.

Lindsay Gorman, a former senior advisor in the Biden administration, told NYT that “we’ve gone round and round and ended up not too far from where we started.”

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

TikTok deal is done; Trump wants praise while users fear MAGA tweaks Read More »

Big Tech basically took Trump’s unpredictable trade war lying down

AMD, Apple, bytedance, china, Donald Trump, Features, intel, NVIDIA, Policy, reciprocal tariffs, tariffs, tiktok, trade war / Paul Patrick / December 29, 2025

From Apple gifting a gold statue to the US taking a stake in Intel.

Credit: Aurich Lawson | Getty Images

As the first year of Donald Trump’s chaotic trade war winds down, the tech industry is stuck scratching its head, with no practical way to anticipate what twists and turns to expect in 2026.

Tech companies may have already grown numb to Trump’s unpredictable moves. Back in February, Trump warned Americans to expect “a little pain” after he issued executive orders imposing 10–25 percent tariffs on imports from America’s biggest trading partners, including Canada, China, and Mexico. Immediately, industry associations sounded the alarm, warning that the costs of consumer tech could increase significantly. By April, Trump had ordered tariffs on all US trade partners to correct claimed trade deficits, using odd math that critics suspected came from a chatbot. (Those tariffs bizarrely targeted uninhabited islands that exported nothing and were populated by penguins.)

Costs of tariffs only got higher as the year wore on. But the tech industry has done very little to push back against them. Instead, some of the biggest companies made their own surprising moves after Trump’s trade war put them in deeply uncomfortable positions.

Apple gives Trump a gold statue instead of US-made iPhone

Right from the jump in February, Apple got backed into a corner after Trump threatened a “flat” 60 percent tariff on all Chinese imports, which experts said could have substantially taxed Apple’s business. Moving to appease Trump, Apple promised to invest $500 billion in the US in hopes of avoiding tariffs, but that didn’t take the pressure off for long.

By April, Apple stood by and said nothing as Trump promised the company would make “made in the USA” iPhones. Analysts suggested such a goal was “impossible,” calling the idea “impossible at worst and highly expensive at best.”

Apple’s silence did not spare the company Trump’s scrutiny. The next month, Trump threatened Apple with a 25 percent tariff on any iPhones sold in the US that were not manufactured in America. Experts were baffled by the threat, which appeared to be the first time a US company was threatened directly with tariffs.

Typically, tariffs are imposed on a country or category of goods, like smartphones. It remains unclear if it would even be legal to levy a tariff on an individual company like Apple, but Trump never tested those waters. Instead, Trump stopped demanding the American-made iPhone and withdrew other tariff threats after he was apparently lulled into submission by a gold statue that Apple gifted him in August. The engraved glass disc featured an Apple logo and Tim Cook’s signature above a “Made in USA” stamp, celebrating Donald Trump for his “Apple American Manufacturing Program.”

Trump’s wild deals shake down chipmakers

Around the same time that Trump eased pressure on Apple, he turned his attention to Intel. On social media in August, Trump ordered Intel CEO Lip-Bu Tan to “resign immediately,” claiming he was “highly conflicted.” In response, Tan did not resign but instead met with Trump and struck a deal that gave the US a 10 percent stake in Intel. Online, Trump bragged that he let Tan “keep his job” while hyping the deal—which The New York Times described as one of the “largest government interventions in a US company since the rescue of the auto industry after the 2008 financial crisis.”

But unlike the auto industry, Intel didn’t need the money. And rather than helping an ailing company survive a tough spot, the deal risked disrupting Intel’s finances in ways that spooked shareholders. It was therefore a relief to no one when Intel detailed everything that could go wrong in an SEC filing, including the possible dilution of investors’ stock due to discounting US shares and other risks of dilution, if certain terms of the deal kick in at some point in the future.

The company also warned of potential lawsuits challenging the legality of the deal, which Intel fears could come from third parties, the US government, or foreign governments. Most ominous, Intel admitted there was no way to predict what other risks may come, both in the short-term and long-term.

Of course, Intel wasn’t the only company Trump sought to control, and not every company caved. He tried to strong-arm the Taiwan Semiconductor Manufacturing Company (TSMC) in September into moving half its chip manufacturing into the US, but TSMC firmly rejected his demand. And in October, when Trump began eyeing stakes in quantum computing firms, several companies were open to negotiating, but with no deals immediately struck, it was hard to ascertain how seriously they were entertaining Trump’s talks.

Trump struck another particularly wild deal the same month as the Intel agreement. That deal found chipmakers Nvidia and AMD agreeing to give 15 percent of revenue to the US from sales to China of advanced computer chips that could be used to fuel frontier AI. By December, Nvidia’s deal only drew more scrutiny, as the chipmaker agreed to give the US an even bigger cut—25 percent—of sales of its second most advanced AI chips, the H200.

Again, experts were confused, noting that export curbs on Nvidia’s H20 chips, for example, were imposed to prevent US technology thefts, maintain US tech dominance, and protect US national security. Those chips are six times less powerful than the H200. To them, it appeared that the Trump administration was taking payments to overlook risks without a clear understanding of how that might give China a leg-up in the AI race. It also did not appear to be legal, since export licenses cannot be sold under existing federal law, but government lawyers have supposedly been researching a new policy that would allow the US to collect the fees.

Trump finally closed TikTok deal

As the end of 2025 nears, the tech company likely sweating Trump’s impulses most may be TikTok owner ByteDance. In October, Trump confirmed that China agreed to a deal that allows the US to take majority ownership of TikTok and license the TikTok algorithm to build a US version of the app.

Trump has been trying to close this deal all year, while ByteDance remained largely quiet. Prior to the start of Trump’s term, the company had expressed resistance to selling TikTok to US owners, and as recently as January, a ByteDance board member floated the idea that Trump could save TikTok without forcing a sale. But China’s approval was needed to proceed with the sale, and near the end of December, ByteDance finally agreed to close the deal, paving the way for Trump’s hand-picked investors to take control in 2026.

It’s unclear how TikTok may change under US control, perhaps shedding users if US owners cave to Trump’s suggestion that he’d like to see the app go “100 percent MAGA” under his hand-picked US owners. It’s possible that the US version of the app could be glitchy, too.

Whether Trump’s deal actually complies with a US law requiring that ByteDance divest control of TikTok or else face a US ban has yet to be seen. Lawmaker scrutiny and possible legal challenges are expected in 2026, likely leaving both TikTok users and ByteDance on the edge of their seats waiting to see how the globally cherished short video app may change.

Trump may owe $1 trillion in tariff refunds

The TikTok deal was once viewed as a meaningful bargaining chip during Trump’s tensest negotiations with China, which has quickly emerged as America’s fiercest rival in the AI race and Trump’s biggest target in his trade war.

But as closing the deal remained elusive for most of the year, analysts suggested that Trump grew “desperate” to end tit-for-tat retaliations that he started, while China appeared more resilient to US curbs than the US was to China’s.

In one obvious example, many Americans’ first tariff pains came when Trump ended a duty-free exemption in February for low-value packages imported from cheap online retailers, like Shein and Temu. Unable to quickly adapt to the policy change, USPS abruptly stopped accepting all inbound packages from Hong Kong and China. After a chaotic 24 hours, USPS started slowly processing parcels again while promising Americans that it would work with customs to “implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”

Trump has several legal tools to impose tariffs, but the most controversial path appears to be his favorite. The Supreme Court is currently weighing whether the International Emergency Economic Powers Act (IEEPA) grants a US president unilateral authority to impose tariffs.

Seizing this authority, Trump imposed so-called “reciprocal tariffs” at whim, the Consumer Technology Association and the Chamber of Commerce told the Supreme Court in a friend-of-the-court brief in which they urged the justices to end the “perfect storm of uncertainty.”

Unlike other paths that would limit how quickly Trump could shift tariff rates or how high the tariff rate could go, under IEEPA, Trump has imposed tariff rates as high as 125 percent. Deferring to Trump will cost US businesses, CTA and CoC warned. CTA CEO Gary Shapiro estimated that Trump has changed these tariff rates 100 times since his trade war began, affecting $223 billion of US exports.

Meanwhile, one of Trump’s biggest stated goals of his trade war—forcing more manufacturing into the US—is utterly failing, many outlets have reported.

Likely due to US companies seeking more stable supply chains, “reshoring progress is nowhere to be seen,” Fortune reported in November. That month, a dismal Bureau of Labor Statistics released a jobs report that an expert summarized as showing that the “US is losing blue-collar jobs for the first time since the pandemic.”

A month earlier, the nonpartisan policy group the Center for American Progress drew on government labor data to conclude that US employers cut 12,000 manufacturing jobs in August, and payrolls for manufacturing jobs had decreased by 42,000 since April.

As tech companies take tech tariffs on the chin, perhaps out of fears that rattling Trump could impact lucrative government contracts, other US companies have taken Trump to court. Most recently, Costco became one of the biggest corporations to sue Trump to ensure that US businesses get refunded if Trump loses the Supreme Court case, Bloomberg reported. Other recognizable companies like Revlon and Kawasaki have also sued, but small businesses have largely driven opposition to Trump’s tariffs, Bloomberg noted.

Should the Supreme Court side with businesses—analysts predict favorable odds—the US could owe up to $1 trillion in refunds. Dozens of economists told SCOTUS that Trump simply doesn’t understand why having trade deficits with certain countries isn’t a threat to US dominance, pointing out that the US “has been running a persistent surplus in trade in services for decades” precisely because the US “has the dominant technology sector in the world.”

Justices seem skeptical that IEEPA grants Trump the authority, ordinarily reserved for Congress, to impose taxes. However, during oral arguments, Justice Amy Coney Barrett fretted that undoing Trump’s tariffs could be “messy.” Countering that, small businesses have argued that it’s possible for Customs and Border Patrol to set up automatic refunds.

While waiting for the SCOTUS verdict (now expected in January), the CTA ended the year by advising tech companies to keep their receipts in case refunds require requests for tariffs line by line—potentially complicated by tariff rates changing so drastically and so often.

Biggest tariff nightmare may come in 2026

Looking into 2026, tech companies cannot breathe a sigh of relief even if the SCOTUS ruling swings their way, though. Under a separate, legally viable authority, Trump has threatened to impose tariffs on semiconductors and any products containing them, a move the semiconductor industry fears could cost $1 billion.

And if Trump continues imposing tariffs on materials used in popular tech products, the CTA told Ars in September that potential “tariff stacking” could become the industry’s biggest nightmare. Should that occur, US manufacturers could end up double-, triple-, or possibly even quadruple-taxed on products that may contain materials subject to individual tariffs, like semiconductors, polysilicon, or copper.

Predicting tariff costs could become so challenging that companies will have no choice but to raise prices, the CTA warned. That could threaten US tech competitiveness if, possibly over the long term, companies lose significant sales on their most popular products.

For many badly bruised by the first year of tariffs, it’s hard to see how tariffs could ever become a winning strategy for US tech dominance, as Trump has long claimed. And Americans continue to feel more than “a little pain,” as Trump forecasted, causing many to shift their views on the president.

Americans banding together to oppose tariffs could help prevent the worst possible outcomes. With prices already rising on certain goods in the US, the president reversed some tariffs as his approval ratings hit record lows. But so far, Big Tech hasn’t shown much interest in joining the fight, instead throwing money at the problem by making generous donations to things like Trump’s inaugural fund or his ballroom.

A bright light for the tech industry could be the midterm elections, which could pressure Trump to ease off aggressive tariff regimes, but that’s not a given. Trump allies have previously noted that the president typically responds to pushback on tariffs by doubling down. And one of Trump’s on-again-off-again allies, Elon Musk, noted in December in an interview that Trump ignored his warnings that tariffs would drive manufacturing out of the US.

“The president has made it clear he loves tariffs,” Musk said.

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Big Tech basically took Trump’s unpredictable trade war lying down Read More »

ByteDance confirms TikTok will be controlled by US owners

bytedance, china, Donald Trump, national security, Policy, tiktok, tiktok us / Rejus Almole / December 20, 2025

According to Trump, the deal ensures that TikTok complies with the divest-or-ban law, but the White House is still not providing more details. Instead, the Trump administration “referred questions about the deal to TikTok,” Reuters reported.

If the deal closes as expected on January 22, the new US company will have an estimated value of $14 billion, Vice President JD Vance noted in September.

At that point, the deal will likely face mounting scrutiny from lawmakers, including Republicans, who aren’t yet sure if the US operation resolves all national security concerns. Chinese control of the algorithm was a particular sticking point for critics, who claimed that Trump was giving China exactly what it wanted: international recognition for exporting leading technology to the US.

In September, Sen. Chuck Grassley (R.-Iowa) vowed to take a “hard line” and oppose the deal’s framework if it violates the divest-or-ban law. Already, Representative John Moolenaar (R-Mich.), chair of the House Select Committee on China, is planning to hold a hearing next year with US TikTok leadership.

Sen. Elizabeth Warren (D-Mass.) has accused Trump of handing over “even more control of what you watch to his billionaire buddies,” through the TikTok deal, which she likened to enabling a “billionaire takeover of TikTok.” Many TikTokers likely share her concerns, after Trump suggested he’d like to see his hand-picked investors tweak the algorithm to be “100 percent MAGA.”

Questions remain until the exact terms of the deal become public, Warren said.

ByteDance did not respond to Ars’ request to comment.

With the terms obscured, it’s unclear how quickly TikTok may change in 2026 under US ownership. In July, the Information reported that when approximately 170 million US users get ported over to the new US-owned app, it could be buggy.

ByteDance confirms TikTok will be controlled by US owners Read More »

Trump says TikTok should be tweaked to become “100% MAGA”

bytedance, china, Donald Trump, national security, Policy, tiktok, us-china trade war / Rejus Almole / September 26, 2025

Previously, experts had suggested that China had little incentive to follow through with the deal, while as recently as July, ByteDance denied reports that it agreed to sell TikTok to the US, the South China Morning Post reported. Yesterday, Reuters noted that Vice President JD Vance confirmed that the “new US company will be valued at around $14 billion,” a price tag “far below some analyst estimates,” which might frustrate ByteDance. Questions also remain over what potential concessions Trump may have made to get Xi’s sign-off.

It’s also unclear if Trump’s deal meets the legal requirements of the Protecting Americans from Foreign Adversary Controlled Applications Act, with Reuters reporting that “numerous details” still need to be “fleshed out.” Last Friday, James Sullivan of JP Morgan suggested on CNBC that “Trump’s proposed TikTok deal lacked clarity on who is in control of the algorithm, leaving the national security concerns wide open,” CNBC reported.

Other critics, including the Electronic Frontier Foundation’s civil liberties director David Greene, warned in a statement to Ars that the US now risks “turning over” TikTok “to the allies of a President who seems to have no respect for the First Amendment.”

Jennifer Huddleston, a senior fellow in technology policy at the Cato Institute, agreed. “The arrangement creates uncertainty about what influence or oversight the US government might require over this separate algorithm that could raise potential First Amendment concerns regarding government influence over a private actor,” Huddleston said.

Will TikTok become right-wing?

The Guardian recently conducted a deep dive into how the Murdochs’ and Ellisons’ involvement could “gift Trump’s billionaire allies a degree of control over US media that would be vast and unprecedented” by allowing “the owners of the US’s most powerful cable TV channels” to “steer the nation’s most influential social network.”

Trump says TikTok should be tweaked to become “100% MAGA” Read More »

“China keeps the algorithm”: Critics attack Trump’s TikTok deal

bytedance, Donald Trump, national security, Policy, tiktok / Mike M. / September 17, 2025

However, Trump seems to think that longtime TikTok partner Oracle taking a bigger stake while handling Americans’ user data at its facilities in Texas will be enough to prevent remaining China-based owners—which will maintain less than a 20 percent stake—from allegedly spying, launching disinformation campaigns, or spreading other kinds of propaganda.

China previously was resistant to a forced sale of TikTok, FT reported, even going so far as to place export controls on algorithms to keep the most lucrative part of TikTok in the country. And “it remains unclear to what extent TikTok’s Chinese parent would retain control of the algorithm in the US as part of a licensing deal,” FT noted.

On Tuesday, Wang Jingtao, deputy head of China’s cyber security regulator, did not go into any detail on how China’s access to US user data would be restricted under the deal. Instead, Wang only noted that ByteDance would “entrust the operation of TikTok’s US user data and content security,” presumably to US owners, FT reported.

One Asia-based investor told FT that the US would use “at least part of the Chinese algorithm” but train it on US user data, while a US advisor accused Trump of chickening out and accepting a deal that didn’t force a sale of the algorithm.

“After all this, China keeps the algorithm,” the US advisor said.

To the Asia-based investor, it seemed like Trump gave China exactly what it wants, since “Beijing wants to be seen as exporting Chinese technology to the US and the world.”

It’s likely more details will be announced once Trump and Chinese President Xi Jinping hold a phone conference on Friday. ByteDance has yet to comment on the deal and did not respond to Ars’ request to comment.

“China keeps the algorithm”: Critics attack Trump’s TikTok deal Read More »

Will TikTok go dark Wednesday? Trump claims deal with China avoids shutdown.

bytedance, china, Donald Trump, national security, Policy, tiktok, trump administration, trump tariffs, us-china trade war / Paul Patrick / September 15, 2025

According to Bessent, China agreed to “commercial terms” and “technical details” of a deal “between two parties,” but Xi and Trump still needed to discuss the terms—as well as possibly China’s demands to ease export controls on chips and other high-tech goods—before the deal can be finalized, Reuters reported.

ByteDance, TikTok’s current owner, which in the past has opposed the sale, did not immediately respond to Ars’ request to comment.

While experts told Reuters that finalizing the TikTok deal this week could be challenging, Trump seems confident. On Truth Social, the US president boasted that talks with China have been going “very well” and claimed that TikTok users will soon be “very happy.”

“A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save,” Trump said, confirming that he would speak to Xi on Friday and claiming that their relationship “remains a very strong one!!!”

China accuses US of “economic coercion”

However, China’s Ministry of Commerce spokesperson on Monday continued to slam US export controls and tariffs that are frustrating China. The spokesperson suggested that those trade restrictions “constitute the containment and suppression of China’s development of high-tech industries,” like advanced computer chips and artificial intelligence, NBC News reported.

“This is a typical act of unilateral bullying and economic coercion,” the spokesperson said, indicating it may even be viewed as a retaliation violating the temporary truce.

Rather than committing to de-escalate tensions, both countries have recently taken fresh jabs in the trade war. On Monday, China announced two probes into US semiconductors, as well as an antitrust ruling against Nvidia and “an anti-discrimination probe into US measures against China’s chip sector,” NBC News reported.

Will TikTok go dark Wednesday? Trump claims deal with China avoids shutdown. Read More »

Trump, who promised to save TikTok, threatens to shut down TikTok

bytedance, china, Donald Trump, national security, Policy, tiktok, us-china trade war / Mike M. / July 25, 2025

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.

US-China tariff talks complicate TikTok deal

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. In an op-ed this week, Sean Stein, the president of the US-China Business Council, suggested that “it is almost inevitable” that the US and China will extend the 90-day truce, indicating that Trump is far from securing a favorable deal for the US following weeks of tense negotiations with America’s biggest trade adversary.

It’s possible that the Trump administration is threatening to shut down TikTok in hopes that China will make a concession ahead of the September deadline. Lutnick’s comments could even mean that Trump has possibly failed to clinch the deal, which could have untold consequences in the US-China trade war, perhaps wounding Trump’s ego after his posturing that only he can save TikTok.

For TikTok fans and Americans who rely on TikTok for their livelihoods, betting on Trump’s dealmaking skills likely continues to feel tenuous as Lutnick forecasts a potential shutdown that could come within weeks.

“If that deal gets approved by the Chinese, then that deal will happen,” Lutnick said. “If they don’t approve it, then TikTok is going to go dark, and those decisions are coming very soon.”

Trump, who promised to save TikTok, threatens to shut down TikTok Read More »

Trump suggests he needs China to sign off on TikTok sale, delays deal again

bytedance, Donald Trump, national security, Policy, rare earths, semiconductors, tariffs, tiktok, TikTok ban, us-china trade war / Tim Belzer / June 20, 2025

For many Americans, losing TikTok would be disruptive. TikTok has warned that US businesses could lose $1 billion in one month if TikTok shuts down. As these businesses wait in limbo for a resolution to the situation, it’s getting harder to take the alleged national security threat seriously, as clinching the deal appears to lack urgency.

On Wednesday, the White House continued to warn that Americans are not safe using TikTok, though, despite leaving Americans vulnerable for an extended period that could now stretch to eight months.

In a statement, White House press secretary Karoline Leavitt only explained that “President Trump does not want TikTok to go dark” and would sign an executive order “to keep TikTok up and running” through mid-September. Leavitt confirmed that the Trump administration would focus on finishing the deal in this three-month period, “making sure the sale closes so that Americans can keep using TikTok with the assurance that their data is safe and secure,” Reuters reported.

US-China tensions continue, despite truce

Trump’s negotiations with China have been shaky, but a truce was reestablished last week that could potentially pave the way for a TikTok deal.

Initially, Trump had planned to use the TikTok deal as a bargaining chip, but the tit-for-tat retaliations between the US and China all spring reportedly left China hesitant to agree to any deal. Perhaps sensing the power shift in negotiations, Trump offered to reduce China’s highest tariffs to complete the deal in March. But by April, analysts opined that Trump was still “desperate” to close, while China saw no advantage in letting go of TikTok any time soon.

Despite the current truce, tensions between the US and China continue, as China has begun setting its own deadlines to maintain leverage in the trade war. According to The Wall Street Journal, China put a six-month limit “on the sales of rare earths to US carmakers and manufacturers, giving Beijing leverage if the trade conflict flares up again.”

Trump suggests he needs China to sign off on TikTok sale, delays deal again Read More »

Privacy-problematic DeepSeek pulled from app stores in South Korea

AI, bytedance, china, DeepSeek, deepthink, infosec, llm, privacy / Kris Guyer / February 17, 2025

In a media briefing held Monday, the South Korean Personal Information Protection Commission indicated that it had paused new downloads within the country of Chinese AI startup DeepSeek’s mobile app. The restriction took effect on Saturday and doesn’t affect South Korean users who already have the app installed on their devices. The DeepSeek service also remains accessible in South Korea via the web.

Per Reuters, PIPC explained that representatives from DeepSeek acknowledged the company had “partially neglected” some of its obligations under South Korea’s data protection laws, which provide South Koreans some of the strictest privacy protections globally.

PIPC investigation division director Nam Seok is quoted by the Associated Press as saying DeepSeek “lacked transparency about third-party data transfers and potentially collected excessive personal information.” DeepSeek reportedly has dispatched a representative to South Korea to work through any issues and bring the app into compliance.

It’s unclear how long the app will remain unavailable in South Korea, with PIPC saying only that the privacy issues it identified with the app might take “a considerable amount of time” to resolve.

Western infosec sources have also expressed dissatisfaction with aspects of DeepSeek’s security. Mobile security company NowSecure reported two weeks ago that the app sends information unencrypted to servers located in China and controlled by TikTok owner ByteDance; the week before that, another security company found an open, web-accessible database filled with DeepSeek customer chat history and other sensitive data.

Ars attempted to ask DeepSeek’s DeepThink (R1) model about the Tiananmen Square massacre or its favorite “Winnie the Pooh” movie, but the LLM continued to have no comment.

Privacy-problematic DeepSeek pulled from app stores in South Korea Read More »

Trump’s reported plans to save TikTok may violate SCOTUS-backed law

Artificial Intelligence, bytedance, Donald Trump, national security, oracle, Perplexity.ai, Policy, tiktok, TikTok ban / Kris Guyer / January 27, 2025

Everything insiders are saying about Trump’s plan to save TikTok.

It was apparently a busy weekend for key players involved in Donald Trump’s efforts to make a deal to save TikTok.

Perhaps the most appealing option for ByteDance could be if Trump blessed a merger between TikTok and Perplexity AI—a San Francisco-based AI search company worth about $9 billion that appears to view a TikTok video content acquisition as a path to compete with major players like Google and OpenAI.

On Sunday, Perplexity AI submitted a revised merger proposal to TikTok-owner ByteDance, reviewed by CNBC, which sources told AP News included feedback from the Trump administration.

If the plan is approved, Perplexity AI and TikTok US would be merged into a new entity. And once TikTok reaches an initial public offering of at least $300 billion, the US government could own up to 50 percent of that new company, CNBC reported. In the proposal, Perplexity AI suggested that a “fair price” would be “well north of $50 billion,” but the final price will likely depend on how many of TikTok’s existing investors decide to cash out following the merger.

ByteDance has maintained a strong resistance to selling off TikTok, especially a sale including its recommendation algorithm. Not only would this option allow ByteDance to maintain a minority stake in TikTok, but it also would leave TikTok’s recommendation algorithm under ByteDance’s control, CNBC reported. The deal would also “allow for most of ByteDance’s existing investors to retain their equity stakes,” CNBC reported.

But ByteDance may not like one potential part of the deal. An insider source told AP News that ByteDance would be required to allow “full US board control.”

According to AP News, US government ownership of a large stake in TikTok would include checks to ensure the app doesn’t become state controlled. The government’s potential stake would apparently not grant the US voting power or a seat on the merged company’s board.

A source familiar with Perplexity AI’s proposal confirmed to Ars that the reporting from CNBC and AP News is accurate.

Trump denied Oracle’s involvement in talks

Over the weekend, there was also a lot of speculation about Oracle’s involvement in negotiations. NPR reported that two sources with direct knowledge claimed that Trump was considering “tapping software company Oracle and a group of outside investors to effectively take control of the app’s global operations.”

That would be a seemingly bigger grab for the US than forcing ByteDance to divest only TikTok’s US operations.

“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” one source told NPR. “ByteDance wouldn’t completely go away, but it would minimize Chinese ownership.”

Oracle apparently met with the Trump administration on Friday and has another meeting scheduled this week to discuss Oracle buying a TikTok stake “in the tens of billions,” NPR reported.

But Trump has disputed that, saying this past weekend that he “never” spoke to Oracle about buying TikTok, AP News reported.

“Numerous people are talking to me. Very substantial people,” Trump said, confirming that he would only make a deal to save TikTok “if the United States benefits.”

All sources seemed to suggest that no deal was close to being finalized yet. Other potential Big Tech buyers include Microsoft or even possibly Elon Musk (can you imagine TikTok merged with X?). On Saturday, Trump suggested that he would likely announce his decision on TikTok’s future in the next 30 days.

Meanwhile, TikTok access has become spotty in the US. Google and Apple dropped TikTok from their app stores when the divest-or-ban law kicked in, partly because of the legal limbo threatening hundreds of billions in fines if Trump changes his mind about enforcement. That means ByteDance currently can’t push updates to US users, and anyone who offloads TikTok or purchases a new device can’t download the app in popular distribution channels.

“If we can save TikTok, I think it would be a good thing,” Trump said.

Could Trump’s plan violate divest-or-ban law?

The divest-or-ban law is formally called the Protecting Americans from Foreign Adversary Controlled Applications Act. For months, TikTok was told in court that the law required either a sale of TikTok US operations or a US ban, but now ByteDance seems to believe there’s another option to keep TikTok in the US without forcing a sale.

It remains unclear if lawmakers will approve Trump’s plan if it doesn’t force a sale of TikTok. US Representative Raja Krishnamoorthi (D-Ill.), who co-sponsored the law, issued a statement last week insisting that “ByteDance divesting remains the only real solution to protect our national security and guarantee Americans access to TikTok.”

Krishnamoorthi declined Ars’ request to comment on whether leaked details of Trump’s potential deal to save TikTok could potentially violate the divest-or-ban law. But debate will likely turn on how the law defines “qualified divestiture.”

Under the law, qualified divestiture could be either a “divestiture or similar transaction” that meets two conditions. First, the transaction is one that Trump “determines, through an interagency process, would result in the relevant foreign adversary controlled application no longer being controlled by a foreign adversary.” Second, the deal blocks any foreign adversary-controlled entity or affiliate from interfering in TikTok US operations, “including any cooperation” with foreign adversaries “with respect to the operation of a content recommendation algorithm or an agreement with respect to data sharing.”

That last bit seems to suggest that lawmakers might clash with Trump over ByteDance controlling TikTok’s algorithm, even if a company like Oracle or Perplexity serves as a gatekeeper to Americans’ data safeguarding US national security interests.

Experts told NPR that ByteDance could feasibly maintain a minority stake in TikTok US under the law, with Trump seeming to have “wide latitude to interpret” what is or is not a qualified divestiture. One congressional staffer told NPR that lawmakers might be won over if the Trump administration secured binding legal agreements “ensuring ByteDance cannot covertly manipulate the app.”

The US has tried to strike just such a national security agreement with ByteDance before, though, and it ended in lawmakers passing the divest-or-ban law. During the government’s court battle with TikTok over the law, the government repeatedly argued that prior agreement—also known as “Project Texas,” which ensured TikTok’s US recommendation engine was stored in the Oracle cloud and deployed in the US by a TikTok US subsidiary—was not enough to block Chinese influence. Proposed in 2022, the agreement was abruptly ended in 2023 when the Committee on Foreign Investment in the United States (CFIUS) determined only divestiture would resolve US concerns.

CFIUS did not respond to Ars’ request for comment.

The key problem at that point was ByteDance maintaining control of the algorithm, the government successfully argued in a case that ended in a Supreme Court victory.

“Even under TikTok’s proposed national security agreement, the source code for the recommendation engine would originate in China,” the government warned.

That seemingly leaves a vulnerability that any Trump deal allowing ByteDance to maintain control of the algorithm would likely have to reconcile.

“Under Chinese national-security laws, the Chinese government can require a China-based company to ‘surrender all its data,'” the US argued. That ultimately turned TikTok into “an espionage tool” for the Chinese Communist Party.

There’s no telling yet if Trump’s plan can set up a better version of Project Texas or convince China to sign off on a TikTok sale. Analysts have suggested that China may agree to a TikTok sale if Trump backs down on tariff threats.

ByteDance did not respond to Ars’ request for comment.

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Trump’s reported plans to save TikTok may violate SCOTUS-backed law Read More »

Trump can save TikTok without forcing a sale, ByteDance board member claims

bytedance, china, china tariffs, Donald Trump, elon musk, Policy, tiktok, TikTok ban, us-china trade war, World Economic Forum / Mike M. / January 23, 2025

TikTok owner ByteDance is reportedly still searching for non-sale options to stay in the US after the Supreme Court upheld a national security law requiring that TikTok’s US operations either be shut down or sold to a non-foreign adversary.

Last weekend, TikTok briefly went dark in the US, only to come back online hours later after Donald Trump reassured ByteDance that the US law would not be enforced. Then, shortly after Trump took office, he signed an executive order delaying enforcement for 75 days while he consulted with advisers to “pursue a resolution that protects national security while saving a platform used by 170 million Americans.”

Trump’s executive order did not suggest that he intended to attempt to override the national security law’s ban-or-sale requirements. But that hasn’t stopped ByteDance, board member Bill Ford told World Economic Forum (WEF) attendees, from searching for a potential non-sale option that “could involve a change of control locally to ensure it complies with US legislation,” Bloomberg reported.

It’s currently unclear how ByteDance could negotiate a non-sale option without facing a ban. Joe Biden’s extended efforts through Project Texas to keep US TikTok data out of China-controlled ByteDance’s hands without forcing a sale dead-ended, prompting Congress to pass the national security law requiring a ban or sale.

At the WEF, Ford said that the ByteDance board is “optimistic we will find a solution” that avoids ByteDance giving up a significant chunk of TikTok’s operations.

“There are a number of alternatives we can talk to President Trump and his team about that are short of selling the company that allow the company to continue to operate, maybe with a change of control of some kind, but short of having to sell,” Ford said.

Trump can save TikTok without forcing a sale, ByteDance board member claims Read More »

TikTok is mostly restored after Trump pledges an order and half US ownership

bytedance, Donald Trump, Policy, President Donald Trump, Tech, tiktok / Paul Patrick / January 20, 2025

At a rally Sunday, he did not clarify if this meant a US-based business or the government itself. “So they’ll have a partner, the United States, and they’ll have a lot of bidders … And there’s no risk, we’re not putting up any money. All we’re doing is giving them the approval without which they don’t have anything,” Trump said Sunday.

Legal limbo

Trump’s order, and TikTok’s return to service, both seem at odds with the law—and leadership in the Republican party. Speaker Mike Johnson said on NBC’s Meet the Press Sunday that Congress would “enforce the law.” Sens. Tom Cotton (R-Ark.) and Pete Ricketts (R-Neb.) issued a joint statement Sunday, commending Apple, Microsoft, and Google for “following the law,” and noting that other companies “face ruinous bankruptcy” for violating it.

“Now that the law has taken effect, there’s no legal basis for any kind of ‘extension’ of its effective date,” the statement read. The law states that “A path to executing a qualified divestiture” has to be determined before a one-time extension of 90 days can be granted.

TikTok’s best chance at avoiding a shutdown vanished in last week’s unanimous Supreme Court decision upholding the divest-or-sell law. Aimed at protecting national security interests from TikTok’s Chinese owners having access to the habits and data of 170 million American users, the law was ruled to be “content-neutral,” and that the US “had good reason to single out TikTok for special treatment.”

Reports at Forbes, Bloomberg, and elsewhere have suggested that ByteDance and its Chinese owners could be seeking to use TikTok as a bargaining chip, with maneuvers including a sale to Trump ally Elon Musk as a means of counteracting Trump’s proposed tariffs on Chinese imports.

One largely unforeseen side effect of Congress’ TikTok-centered actions is that Marvel Snap, a mobile collectible card and deck-building game, disappeared in similar fashion over the weekend. The game, developed by a California-based team, is published by ByteDance’s Nuverse mobile game division. With no web version available, Snap remained unavailable on app stores Monday morning. A message to players with the game installed noted that “This outage is a surprise to us and wasn’t planned,” though it pledged to restore the game.

TikTok is mostly restored after Trump pledges an order and half US ownership Read More »