TikTok Faces Shutdown Threat in U.S. if China Blocks Ownership Deal, Says Commerce Secretary Lutnick

U.S. Commerce Secretary Howard Lutnick has issued a stern warning regarding TikTok’s future in the United States, stating that the popular video-sharing platform could face a complete shutdown if China refuses to approve a U.S.-based ownership deal. This message reinforces the Biden administration’s stance that national security concerns surrounding TikTok, which boasts about 170 million users in the country, must be addressed by placing its control firmly in American hands.

Speaking in a CNBC interview on Thursday, Lutnick emphasized that any continuation of TikTok’s operations in the U.S. hinges on a sale agreement that shifts majority ownership, technological control, and algorithm oversight to American entities. “China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm,” Lutnick asserted. His remarks leave little room for ambiguity regarding Washington’s expectations.

Algorithm Control Central to National Security Demands

According to Lutnick, U.S. officials are adamant that control over TikTok’s core algorithm — the system responsible for driving user engagement and determining the content seen by millions — must not remain under Chinese influence. He stressed that while a minority Chinese stake may be tolerable, the ownership and operational command of TikTok’s U.S. branch must rest with Americans to safeguard national interests.

If that deal gets approved by the Chinese, then that deal will happen. If they don’t approve it, then TikTok is going to go dark, and those decisions are coming very soon,” Lutnick warned.

Ongoing Uncertainty Amid Legal and Diplomatic Tug-of-War

This warning arrives amid prolonged uncertainty regarding TikTok’s future in the U.S. Although a deal was taking shape earlier in the year that would spin off TikTok’s U.S. operations into a new firm majority-owned by American investors, momentum stalled after China signaled it would not give its approval. The diplomatic deadlock worsened following former President Donald Trump’s recent imposition of steep tariffs on Chinese imports, further straining already tense U.S.-China relations.

Originally, a law passed in 2024 required ByteDance to sell TikTok’s U.S. assets or shut down the app by January 19, 2025. However, Trump extended the deadline by 90 days — moving it to September 17 — citing the need for more time to finalize an acceptable agreement. This marked the third time Trump granted an enforcement reprieve, raising concerns among some lawmakers about executive overreach.

Pushback from Democrats and Legal Questions Surrounding Trump’s Extensions

Despite the extensions, not all U.S. politicians support the delay. Several Democratic lawmakers argue that Trump lacks the legal authority to extend the divestiture deadline, calling his actions unconstitutional. They contend that the law is clear in its requirement for ByteDance to relinquish control by the original January deadline and assert that any deal falling short of full divestment fails to meet legal standards.

Legal experts are now debating whether the repeated delays and proposed compromises, such as partial ownership retention by ByteDance, violate the spirit or letter of the law.

Justice Department Shields Tech Giants Amid Enforcement Delay

In a move that underscores the complexity of the situation, Attorney General Pam Bondi recently sent letters to major tech firms, including Apple and Google, informing them that the Department of Justice would not pursue enforcement actions against them over potential legal breaches tied to hosting the TikTok app.

The DOJ letters, released publicly earlier this month, stated that the federal government had relinquished any claims of liability against companies providing infrastructure or services to TikTok. This decision, the letters noted, was rooted in Trump’s conclusion that a sudden shutdown could disrupt his administration’s oversight of national security and foreign relations.

What Comes Next? TikTok Awaits Crucial Decision from China

For now, TikTok has not issued a public response to Lutnick’s latest comments. However, the company remains in a precarious position as it awaits a final verdict from Chinese regulators. If Beijing refuses to approve the ownership transfer — or imposes strict conditions — TikTok could soon face a blackout in one of its largest and most influential markets.

Simultaneously, American tech firms, investors, and millions of users are watching closely to see whether a path forward can be negotiated. The coming weeks will likely determine whether TikTok remains a staple of American social media or becomes a cautionary tale of geopolitical rivalry and digital sovereignty.

In conclusion, Lutnick’s declaration leaves no doubt: TikTok’s survival in the U.S. depends entirely on China’s willingness to approve a deal that hands over control to American interests. If not, the app could disappear from American phones by mid-September — a consequence with vast implications for U.S.-China relations, global tech regulation, and the future of digital communication.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending Posts