China using TikTok as a pawn to squeeze Trump in trade talks: sources

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President Trump recently announced that he has found a buyer for TikTok, the controversial Chinese-owned short-video app. However, the real issue lies with the seller, as reported by On The Money.

Sources with knowledge of the matter reveal that TikTok is being used as a bargaining chip in the US-Chinese trade negotiations by Beijing. They understand that Trump desires the app to continue operating in the US.

It is mentioned that there will be no sale of TikTok to American investors, which is necessary to comply with a US law prohibiting the app from operating domestically. This sale will not take place until Chinese President Xi Jinping is confident that he has secured a favorable trade deal with the White House.

Chinese President Xi Jinping will extract as much as he can in terms of a favorable trade deal with the White House, sources told On The Money. Jack Forbes/NY Post Design

One individual involved in the talks described the situation by saying, “Trump still doesn’t have a seller.” The source explained that the problem lies in Xi Jinping not prioritizing TikTok in the broader trade talks.

Donald Trump silencing his ringing phone. — Trump has been seeking a solution since returning to the White House, issuing a series of executive orders to keep the TikTok ban from going into effect. AP

Under the terms of the last negotiated deal, the Chinese wanted a minority stake in the new US-investor controlled company and continued ownership of TikTok’s technology, including the algorithm that tailors videos to user preferences. Lawmakers have raised concerns about potential spying activities.

Despite the ongoing negotiations, there is a possibility that TikTok might still face a ban in the coming months unless Trump extends the deadline once again after the current one expires in mid-September.