In a move that’s reigniting tensions between Washington and Beijing, China has officially withdrawn from a pending deal involving TikTok, just hours after former President Donald Trump announced plans to reimpose tariffs on a range of Chinese imports.
The deal, which had been in the works for months, was expected to involve the partial sale or restructuring of TikTok’s U.S. operations to comply with national security concerns raised by U.S. officials. However, with Trump’s renewed focus on tariffs and a hardline stance on trade, Chinese officials are now calling the agreement “no longer viable under escalating political pressure.”
Sources close to the matter say the sudden tariff announcement was perceived in Beijing as a direct provocation, causing Chinese stakeholders to reevaluate cooperation with American partners. TikTok, owned by Beijing-based ByteDance, has been caught in the geopolitical crossfire for years, with U.S. lawmakers accusing the app of posing risks to national security.
While the Biden administration has largely continued Trump-era concerns about Chinese tech influence, this latest development could mark a turning point for how future negotiations unfold.
Analysts say the collapse of the deal could lead to renewed scrutiny of TikTok’s U.S. operations, and potentially trigger a new wave of regulatory action — especially with the upcoming election bringing China-U.S. relations back into the spotlight.
