U.S. President Donald Trump's suggestion that Beijing could cut tariffs in China if he approves the U.S. acquisition of Tiktok's U.S. unit has been rejected by Beijing.
While analysts suspect it may still be part of a bilateral trade deal, China poured cold water on Thursday’s idea as Trump’s economic damage to the possible damage to China’s economic damage and Trump’s love for a deal.
The U.S. leader said on March 26 that he is willing to reduce tariffs to tie a deal with Tiktok's Chinese parents to sell popular short video apps used by 170 million Americans.
See also: After Trump announces 25% car tariffs
Bytedance faces an April 5 deadline to find non-Chinese buyers of Tiktok or will face a U.S. ban on national security venues, which would have come into effect in January under the 2024 law.
The law is a result of concerns about Washington, that Tiktok's ownership gives it some knowledge about the Chinese government, and that Beijing can use the app to influence the United States and collect data about Americans.
Trump said he is willing to extend the April deadline if no agreement is reached on social media apps.
He admitted that China will play any agreement, including getting approval, and told reporters: “Maybe I will give them the role of reducing tariffs or completing tasks to make it complete.”
Tiktok did not comment immediately.
Beijing stands on the ground
Reuters said Beijing quickly rejected Mr Trump's advice, and its foreign ministry said it “repeated our position” on Tiktok.
“The Chinese side's position on opposing the imposition of additional tariffs is also consistent and clear,” said Foreign Ministry spokesman Guo Jiakun.
China's Ministry of Commerce said its stance on tariffs is consistent and that Beijing is willing to interact with Washington on the basis of mutual respect, equality and reciprocity.
Mr Trump's comments suggest that the sale of Tiktok is a priority for his administration and is important enough to use tariffs as a bargaining chip for negotiations with Beijing.
In February and early March, Mr. Trump's current tariffs on all Chinese imports have increased by 20%.
Getting China to agree to any deal to abandon control of businesses worth tens of thousands of dollars has been the biggest key point in completing any agreement. In the past, the U.S. president has used tariffs as bargaining chips in Tiktok negotiations.
On January 20, the first day of his tenure, he warned that he could impose tariffs on China if Beijing fails to approve an agreement with Tiktok.
Pauses to make possible transactions can be extended
U.S. Vice President JD Vance said he hopes a general term for an agreement that will reach ownership of social media platforms by April 5.
Reuters reported last week that White House-led talks among investors are centered around Plan the largest non-center supporter to increase their stakes and get US operations for video appsAccording to two sources familiar with the discussion.
Jeff Yass Susquehanna International Group With Bill Ford Atlantic GeneralBoth are on the BODEDANCE board of directors, sources said, and are discussing with the planned White House. One person said private equity firm KKR is also participating.
The future of apps used by nearly half of Americans has been in the air since a law and has gained overwhelming bipartisan support for the removal of Tiktok by January 19.
The app briefly went black in January after the U.S. Supreme Court upheld the ban, but the app flashed back to life once Trump took office.
The president quickly issued an executive order to postpone the enforcement of the law until April 5, and said in February that he could further extend the deadline to give himself time to trade.
The White House has effectively played the role of an investment bank in an unprecedented level in closely watched deal negotiations.
Free speech advocates believe the ban illegally threatens to restrict Americans from violating the First Amendment to the U.S. Constitution and restrict Americans from entering foreign media.
- Jim Pollard's Extra Input and Editing by Reuters
See also:
Chinese Prime Minister demands open market “strike instability and uncertainty”
Tiktok to invest $3.8 billion in data centers in Thailand
Bidding is rushing to Tiktok when Americans scramble to get the app
Bytedance's plan to have an AI infrastructure plan of $20 billion this year.
The United States' “Tiktok refugees” flock to new Chinese applications
In Trump's 50% ownership proposal for Tiktok
The forced sale of Tiktok in the United States is about security, not freedom of speech.
'China does not allow it': Tiktok compares divest with chip ban
Nearly half of Generation Z hope Tiktok never invented: American polls
