A high-stakes meeting between President-elect Donald Trump and TikTok CEO Shou Zi Chew at Mar-a-Lago signals potential shifts in the platform's fate.
According to Fox News, House China Committee Chairman John Moolenaar believes Trump could orchestrate the "deal of the century" to maintain TikTok's presence in the United States while ensuring its divestment from Chinese control.
The Supreme Court will hear oral arguments on January 10, 2025, concerning a law requiring TikTok to separate from its Chinese parent company, ByteDance. The hearing is scheduled just nine days before the January 19 deadline, which mandates Google and Apple to remove TikTok from their U.S. app stores if ByteDance does not complete the divestment.
House China Committee Chairman Moolenaar expressed confidence in Trump's negotiating abilities, citing meetings with top investors about the platform's future. The Michigan Republican envisions a two-phase process involving an initial buyout followed by what could become the largest IPO in history.
Chairman Moolenaar shared his perspective on Trump's unique position to handle the negotiations:
It will be the deal of the century. First with a buyout and then a massive IPO—probably the largest IPO in history. And I believe President Trump is the perfect leader to negotiate and deliver this win.
Despite previous tensions between Trump and TikTok during his first administration, the President-elect has recently shown a softer stance toward the platform. At a press conference before meeting with TikTok CEO Chew, Trump acknowledged having "a warm spot in my heart for TikTok."
ByteDance's connection to the Chinese Communist Party remains a central issue in the ongoing debate. Critics argue that the company's Beijing base poses significant risks to American users' data security and privacy.
TikTok has attempted to address these concerns through its "Project Texas" initiative, which costs approximately $1.5 billion to implement. The program establishes a separate version of TikTok for U.S. users, with data stored on Oracle's U.S.-based cloud servers.
However, Moolenaar dismisses these efforts as insufficient, emphasizing that ByteDance's CCP affiliation necessitates complete divestment. He points out the stark differences between TikTok's algorithm in the United States versus China as evidence of potential manipulation.
The Supreme Court's involvement comes after TikTok and ByteDance filed an emergency application challenging the constitutionality of the divestment law. Their legal team argues that the legislation violates First Amendment rights by targeting a specific platform.
The current law provides some flexibility, allowing the president to extend the January 19 deadline by up to 90 days if ByteDance shows progress in its divestment efforts. This provision could prove crucial in facilitating negotiations under Trump's incoming administration.
Moolenaar suggests that once legal appeals are exhausted and the Supreme Court reaches its decision, the sale process could move swiftly. He attributes previous delays to ByteDance's reluctance, stating:
I think TikTok and ByteDance have been dragging their feet. Once they realize they're required to follow U.S. law, I believe this will move forward fairly quickly.
The TikTok divestment saga represents a complex intersection of national security concerns, international business relations, and constitutional rights. With Trump's unexpected involvement and the Supreme Court's impending decision, the social media platform's ownership structure faces potential transformation. The outcome will determine TikTok's future in America and set precedents for foreign-owned technology companies operating in the United States.
