Mao Ning, spokesperson for China’s Ministry of Foreign Affairs. Provided by China’s Ministry of Foreign Affairs.
When Donald Trump, the U.S. President-elect, proposed that a joint venture be established between ByteDance, the Chinese parent company of the video platform TikTok, and an American company for TikTok’s U.S. operations, China’s Ministry of Foreign Affairs stated that compliance with ByteDance’s intentions and Chinese regulations is necessary.
During a regular briefing on the 20th, Foreign Ministry Spokesperson Mao Ning responded to questions about Trump’s remarks by saying, “We always believe that business operations and acquisitions should be based on market principles and the independent decisions of companies,” and “if it concerns a Chinese company, it must comply with Chinese laws and regulations.”
In China, where the government’s influence is stronger than in any other country, the Beijing leadership could persuade ByteDance to proceed with selling stakes in TikTok’s U.S. operations if a decision is made. In fact, Bloomberg News recently reported, citing a source, that Chinese officials are considering selling TikTok’s U.S. business rights to Elon Musk, CEO of Tesla.
Nevertheless, Mao’s step-back approach indicates that the Chinese government has yet to take a clear position regarding how to handle TikTok. The idea is that it’s not too late to deliberate on how to deal with TikTok after sufficient conversation once the Trump administration begins.
Earlier, the U.S. Congress passed the “TikTok Ban Bill” in April last year, amid concerns that ByteDance might collect American personal information and pose a threat to national security. The bill essentially prohibits new downloads of TikTok starting on the 19th of the month unless ByteDance sells its U.S. business rights to an American company.
Consequently, ByteDance suspended TikTok’s U.S. services on the night of the 18th local time. However, the situation changed when Trump announced that he would issue an executive order to extend the period for selling the business rights as stipulated in the “TikTok Ban Bill” upon assuming office on the 20th.
President-elect Trump has proposed forming a joint venture between ByteDance and an American company, with the American side owning half of the venture’s shares, claiming, “We can save TikTok and ensure it remains in the hands of good people.” This reflects the view that it can protect the economic impact TikTok generates in the U.S. while preventing American personal information from flowing to China.
During his first term, Trump was inclined to ban TikTok, but during the election process in November last year, he actively used TikTok for his campaign and expressed opposition to its exclusion, stating, “If TikTok is banned, young people will be angered.”
Some analyses suggest that Trump may aim to achieve significant agreements with China through the “TikTok Rescue” initiative, seeking to protect U.S. advanced industries such as semiconductors and electric vehicles, maintain dollar hegemony, expand agricultural exports, and further open China’s financial markets. China, in return for transferring some of TikTok’s shares to American companies, could demand a reduction in “tariff barriers.”
In a statement posted on its X (formerly Twitter) account on the 19th, TikTok said, “We are grateful to President(-elect) Trump for assuring us that our service providers will not face any penalties,” adding, “We will work with President(-elect) Trump to find a long-term solution that will allow TikTok to remain in the U.S.”
Mao reiterated that “TikTok has complied with U.S. regulations and has never threatened U.S. national security. It has received deep affection from American users and played a positive role in promoting employment and consumption within the U.S.” She hoped that “the U.S. sincerely listens to rational voices and provides an open, fair, and non-discriminatory business environment for market entities from all countries.”
In response to Elon Musk’s comment that “the U.S. allows TikTok’s operation, but China blocks X,” Mao reiterated that “the Chinese government manages the internet according to law. We welcome internet companies from various countries to develop in China, provided they comply with Chinese regulations and offer safe and reliable products and services.”
The requirement of “complying with Chinese regulations” implies that posts critical of China’s President Xi Jinping or the Chinese Communist Party must be fundamentally blocked. Engaging in the social media business in China necessitates constant user censorship, which enterprises from Western countries, valuing “freedom of expression” as a fundamental right, find difficult to accept.