TikTok U.S. Assets Spin-Off Halted Amid China Trade Tensions

Plans to spin off TikTok's U.S. operations into an American-based company have been paused. The halt follows China's disapproval after President Trump's tariff announcements. The proposed deal involved U.S. investors owning the majority and ByteDance holding a minority stake. Both ByteDance and the White House have not commented.

A proposed deal to separate TikTok's U.S. operations from its Chinese parent company ByteDance has been put on hold. This development comes after China indicated it would not approve the move if President Trump's recently announced tariffs proceed, sources involved in the negotiations disclosed.

The structure of the planned spin-off was reportedly in its final stages, aiming to establish an American-based entity predominantly owned by U.S. investors. ByteDance was to retain a less than 20% stake. The deal had received approval from the involved parties, including the U.S. government, according to the information provided.

The situation remains tense, with neither ByteDance nor the U.S. government officials providing immediate comments on the halt. Thus far, the Chinese Embassy in Washington D.C. has also refrained from releasing a statement regarding the issue.

(With inputs from agencies.)