The Chinese video-sharing platform "TikTok," which had suspended its services in the United States, has begun restoring its services. This follows an announcement by U.S. President Donald Trump that he would issue an executive order to delay the implementation of the so-called "TikTok ban law" after taking office. However, industry analysts point out that TikTok still faces the risk of losing its U.S. operations unless ByteDance is sold. Confusion among users regarding the future existence of TikTok services in the United States appears to be increasing.
On the 19th (local time), TikTok stated in a release posted on X (formerly Twitter) that "TikTok is in the process of restoring services," expressing gratitude for Trump's assurance that our service providers would not face any penalties. It added, "We will work with President Trump to seek a long-term solution that allows TikTok to remain in the United States."
The U.S. Federal Congress enacted the TikTok ban law in April last year, citing concerns that its parent company, China's ByteDance, was collecting personal data from Americans on a massive scale, posing a national security threat. The main provision states that unless ByteDance sells its operations in the United States to American corporations, as of the 19th, new downloads of TikTok would be prohibited. As a result, TikTok suspended its services in the United States on the afternoon of the 18th.
However, after President Trump announced that he would request U.S. corporations not to suspend TikTok services through Truth Social, TikTok dramatically avoided crisis. He said, "On Monday (the 20th), I will issue an executive order to extend the sale period outlined in the TikTok ban law (for the U.S. business), which could lead to an agreement to protect national security." He also mentioned that the order would include a provision stating that he would not hold corporations accountable for helping prevent TikTok's "service suspension" before my executive order takes effect.
However, foreign media point out that TikTok's recovery is merely a temporary escape from the service suspension crisis. Since a U.S. president cannot unilaterally repeal laws enacted by Congress, a cessation of U.S. operations is inevitable unless ByteDance is sold. The mention by President Trump suggests that he intends to activate regulations that would allow for a 90-day extension on the sale deadline if there are "significant advancements" regarding the sale in connection with the TikTok ban law.
President Trump has also stated that TikTok's U.S. operations should be run by the United States. Specifically, he proposed establishing a joint venture involving ByteDance and American corporations, allowing the U.S. side to hold a 50% equity stake in the entity. He noted, "I hope the United States can have 50% ownership in the joint venture, thereby allowing us to save TikTok and ensure it remains in good hands."
As the influence of the U.S. government grows regarding the existence of TikTok services, user confusion is also expected to increase. Trump, who granted a reprieve from the TikTok service suspension, previously supported the TikTok ban law. During his first term, President Trump aimed to ban TikTok in the United States but adopted a position opposing the ban while using TikTok to appeal to young voters during last year's presidential election. Consequently, there are concerns that the future existence of TikTok services remains unclear, as it may depend on government influence. Additionally, if exceptions are granted to TikTok, there may be issues of equity concerning regulations for other corporations.
Meanwhile, movements to acquire TikTok's U.S. business are being detected. According to foreign media, the U.S. artificial intelligence (AI) startup Purple City AI proposed a merger with TikTok's U.S. branch on the 18th (local time). Although the proposal did not include a price, the source estimated that the acquisition would cost at least $50 billion (approximately 73 trillion won). Previously, it was reported that selling TikTok's U.S. business to Elon Musk, the CEO of Tesla, who is classified as Trump's closest aide and a "pro-China" figure in the U.S., was among the options being considered.