The US has extended the deadline for TikTok to divest or be shut down on several occasions, with the grace period now running until Dec 16. The Sep 25 executive order stated the US Attorney General would not take any action regarding the app over the subsequent 120 days.
At stake are about 170 million American TikTok users, some of whom have voiced concerns about the impact a restriction of the app would have on free speech and the platform’s role in shaping social issues.
China’s current position is “hard to assess” because the fine print has not been publicised, said Alfredo Montufar-Helu, managing director at advisory firm GreenPoint.
“The exact terms and conditions reflected in whatever agreement is reached on TikTok are not known, and so it’s uncertain if the deal is in jeopardy,” said Beijing-based lawyer James Zimmerman.
“But given the current state of relations, everything is on the table and nothing is immune to being retracted, altered or otherwise taken back.”
Beijing and Washington held “working-level talks” on Monday despite the recent spike in tensions, according to China’s Ministry of Commerce, with communication continuing under a framework built during trade negotiations earlier this year.
“Softer language” from the two powers should reduce any threat to the TikTok accord, Montufar-Helu said, adding this “signals they really want to avoid escalating to a point of no return”.
“Of course (the TikTok deal) is more fragile than before, but in terms of probabilities, I think it is more likely than not that the deal will go on. I don’t think it’s going to fall through,” Montufar-Helu said.
This article was first published on SCMP.
