China has reportedly stalled progress on a proposed deal involving TikTok following former U.S. President Donald Trump’s announcement of sweeping new tariffs on Chinese goods. The move signals a cooling of diplomatic and business relations between the two global powers, as trade tensions once again take center stage.
According to sources familiar with the matter, Beijing became hesitant to approve any arrangement that would transfer control or operations of TikTok to a U.S.-based entity in light of the aggressive trade measures. Trump’s tariff plan, which targets a broad range of Chinese imports, has reignited concerns in China about long-term economic pressure and technological containment by the United States.
The TikTok deal, which had been under negotiation for months, was seen as a potential breakthrough in easing digital tensions between the two countries. It involved restructuring TikTok’s U.S. operations to address national security concerns raised by American lawmakers. However, with the new tariffs looming, Chinese regulators are now reconsidering their willingness to cooperate.
Analysts suggest the delay could be a strategic move by China to assert leverage in broader trade talks, using high-profile tech issues as bargaining chips. The situation adds further uncertainty to TikTok’s future in the U.S., especially as political scrutiny intensifies ahead of the 2024 presidential election.
Both sides have yet to make formal statements about the stalled negotiations, but the development underscores the fragile nature of U.S.-China relations, where economic and technological disputes continue to intertwine with political agendas.