The US administration has granted an additional 7 days for the Chinese company that owns the TikTok app to sell its assets in the United States to US companies.
A spokesperson for the US Treasury Department said that the Committee on Foreign Investments in the United States “granted ByteDance a one-week extension, from November 27, 2020, to December 4, 2020, to allow time to consider a revised proposal the committee received recently,” without more details.
This is not the first extension of the deadline granted to TikTok to transfer its activities in the United States to American companies, as the administration of the outgoing President Donald Trump had previously extended two weeks of the deadline that was initially announced and which expired on the 13th of November.
The White House is pressing the Chinese company to sell its assets to American companies to distance itself from the application of the accusations of espionage for China leveled by the Trump administration.
On August 14, Trump signed a decree interesting BiteDance to sell its US activities within 90 days, claiming that it poses a threat to “US national security” because of its proximity to the Chinese government, which the Chinese company denies.
However, the Foreign Investment Committee extended its day to two weeks before the deadline for this platform, which is very popular, especially among teenagers, and has over 100 million users in the United States alone.
ByteDance and TikTok have offered to establish a new company that handles application activities in the United States and includes the American “Oracle” Informatics Group as a technology partner in the United States and the giant “Walmatt” group as a trading partner.
Trump agreed in principle to this solution on the condition that the two American companies own 20% of the new company, which is supposed to be based in the United States, and undertake international activities for the implementation.
However, fears quickly spread among Trump’s circles that this solution would place the new company under the domination of the Chinese company.
The two sides are currently fighting legal battles before US courts.
TikTok has 700 users around the world, including 100 million in the United States.