In a firm and clear message to the international community, China reiterated on Wednesday that any proposed deal involving TikTok must strictly adhere to Chinese laws and regulations—particularly those governing the export of sensitive technologies. This stance comes amid ongoing negotiations and geopolitical tensions between Beijing and Washington regarding the fate of TikTok’s U.S. operations.
The statement followed U.S. President Donald Trump’s recent decision to extend the deadline for TikTok’s sale by an additional 75 days. This extension was granted after reports emerged that a potential agreement—aimed at spinning off the U.S. operations of TikTok from its Chinese parent company, ByteDance—had been delayed.
However, China has made it clear that any such deal cannot be one-sided. In a strongly worded statement published on the website of China’s Ministry of Commerce, a spokesperson criticized certain foreign actions that they claim undermine fair market principles.
“China opposes practices that ignore the laws of the market economy, engage in plundering by force, and damage the legitimate rights and interests of enterprises,” the statement read.
This response is a continuation of China’s earlier objections following President Trump’s announcement of new tariffs, which further strained U.S.-China economic relations.
Technology at the Heart of the Debate
At the core of this dispute lies TikTok’s powerful recommendation algorithm—a key driver behind the app’s meteoric rise in global popularity. The algorithm curates content for users with impressive accuracy and has been described as ByteDance’s “crown jewel.”
Beijing considers this algorithm a strategic technology asset. In 2020, China updated its export control laws, explicitly including technologies related to artificial intelligence and data processing. Under these regulations, the export of any such technology, including ByteDance’s algorithm, requires government approval.
This legislative move effectively grants Beijing the authority to block any deal that would result in the transfer of TikTok’s algorithm or other sensitive technologies to foreign entities.
The Bigger Picture: Tech Sovereignty and Market Fairness
China’s firm position reflects a broader narrative around tech sovereignty and the right of nations to protect their strategic industries. While the U.S. has voiced national security concerns about TikTok’s data handling and potential influence, China argues that international business arrangements must not override the legal frameworks of individual countries.
“Any specific business arrangement involving Chinese firms must comply with Chinese law,” the spokesperson emphasized, particularly highlighting regulations concerning the export of technology.
This situation places ByteDance in a particularly difficult position, as it tries to navigate a path that satisfies both U.S. regulatory demands and Chinese government restrictions.
What’s Next?
With the deadline extended, all eyes are now on how ByteDance, U.S. negotiators, and Chinese authorities will proceed. Any potential deal involving American firms—rumored to include major players like Oracle and Walmart—must now be re-evaluated in light of China’s firm legal boundaries.
Ultimately, this case is not just about one social media app. It symbolizes the growing friction between global technology governance, cross-border data control, and national interests. As major powers increasingly assert control over their digital assets and infrastructure, international companies find themselves walking a tightrope between compliance and survival.
The final outcome of the TikTok saga will likely set a precedent for how global tech companies operate in a world where data, algorithms, and digital platforms are rapidly becoming tools of economic and geopolitical influence.
