Washington: President Donald Trump said Wednesday that a potential deal could put U.S. assets on the shelves and remain “on the table” a few days later.
Several U.S. senators criticized the proposed deal, but Trump defended it.
“We have a deal with some really good people, some very rich companies that will do a great job in this, but we will have to wait and see what will happen in China,” Trump told the Oval Office reporter. “Very on the table.”
On Friday, Trump extended the deadline based on China to divest U.S. assets from short video apps used by 170 million Americans or face a ban. The transaction must be reached on June 19 (the date when the ban takes effect).
Trump has twice granted probation to enforce the ban, which was originally scheduled to take effect in January.
The deal will transfer Tiktok’s U.S. operations to a new company owned and operated by U.S. investors and majority equity. Sources told Reuters that the plan requires the launch of a U.S. entity and deprive China of ownership.
Democratic Senators Mark Warner and Ed Markey said Trump has no legal authority to extend the deadline. Warner also said it was reportedly not in compliance with legal requirements.
On Wednesday, Markey tried to pass legislation to extend the deadline to October, but was locked down.
Senate Intelligence Committee Chairman Tom Cotton pointed out on Wednesday that many U.S. investors wanted to buy Tiktok but warned them that they had to cut all ties with China.
“These potential buyers may ask Congress to somehow compensate them for violating the law, or vaccinate them for the crimes and harm that Tiktok has caused to the American people in the past,” Cotton said. “For any American who wants to invest in half the Tiktok deal, Congress will never protect you from business operations with communist China.”
Tiktok did not comment immediately.
The main stumbling block to any transaction in Tiktok’s U.S. business is the recognition of the Chinese government.
A U.S. investor close to Bontedance said work on the expected deal continues before the June 19 deadline, but the White House and Beijing will first resolve the tariff dispute.
Tiktok is required to cease operations by January 19 unless BONDEDANCE completes the divestiture of the app’s U.S. assets. Trump began his second term as president on January 20 and chose not to execute that term.
The Justice Department told Apple and Google in January that it would not enforce the law, which allowed them to restore new downloads of the app.
