U.S. Commerce Secretary Warns TikTok May Shut Down Without China’s Approval

Commerce Secretary Howard Lutnick stated that TikTok, a popular video-sharing app with around 170 million American users, may cease operations in the United States if China does not approve its sale to U.S. investors.

During an interview on CNBC, Lutnick emphasized the importance of U.S. control over the platform’s algorithm, asserting that Americans must own and regulate the technology.

Despite ongoing negotiations, a proposed deal to spin off TikTok’s U.S. operations into a new, U.S.-based company—majority-owned by American investors—has stalled. The plan was initially delayed after China expressed refusal to approve it, especially following the imposition of significant tariffs on Chinese goods announced earlier this year.

President Trump had previously extended a deadline for ByteDance, TikTok’s Chinese parent company, to sell its U.S. assets three times, with the final extension set for September 17. This came despite a law requiring the sale or shutdown by January 19 if substantial progress wasn’t made.

Lutnick explained, “China can hold onto a portion of ByteDance, or Americans can, but ultimately, U.S. entities will hold control. This means ownership of the technology and the platform’s algorithms will be in American hands.”

He warned that if China approves the deal, it will proceed; otherwise, TikTok’s operations in the U.S. will be shut down soon.

Meanwhile, the Justice Department sent letters to companies like Apple and Google, indicating the government is relinquishing claims of law violations that might arise from a shutdown, citing concerns over national security and foreign policy implications.

However, some Democratic lawmakers question the legal authority behind Trump’s extensions, suggesting the deal may not meet all legal requirements.