Description: US President Donald Trump has stated that representatives from his office would directly engage with their Chinese counterparts in ensuring a deal regarding the social media platform TikTok. The app came under scrutiny from US regulators which raised concerns over privacy violations and TikTok’s connections to the Chinese government, suspecting the app might have been misused for espionage purposes. The sale was halted due to mounting pressure from the US – China trade war, although, recent developments indicated willingness from both sides to finalize the deal which would see TikTok’s US operations pertaining to an American company. Trump extended the sale deadline to 17 Sep, through an executive order which was disputed by the Supreme Court but was eventually implemented.
Impact: Recently concluded trade compromises between the US and China, mostly over rare earth minerals and access to high tech products have impacted the sale of TikTok. The inevitable inclusion of TikTok’s sale in the trade war between China and the US, currently influences the potential resolution of the remaining trade disputes between the two countries. Rapid transfer of TikTok’s Chinese ownership on the American market would further positively incentivize both countries to engage more directly towards other so – called trade surpluses and potentially impact the larger trade framework which is expected to be eventually concluded.