The most famous app, TikTok, which is owned by ByteDance, may fail in the war with Donald Trump who has been lately known for his venture to close down any Chinese companies operating in the U.S.
TikTok is said to be willing to give up in this war as they claim that them selling the company as ordered by the President will make them seem to be weak as they will be doing so under duress. A source, Reuters, said that Chinese officials would rather see the app shut down entirely in the U.S. rather than be divested in a sale made under duress.
An executive order issued by Trumps administration on August 6 gave the Chinese company 45 days to sell TikToks U.S assets or be prohibited from operating in the U.S. The order will expire on September 20 which is when the 45 day period will end.
ByteDance has been in sale talks with some of the U.S. companies, but they claim that the approvals may take a bit longer than the grace period that has been issued. The Chinese company says that they will need to review the potential deals for any approval.
The reason as to why Trumps administration is advocating for the sale of the company is due to security concerns. The U.S. government has accused the company of tapping into information from the users which they feel can be used by the Chinese leadership.ByteDance has sued for the rescission of the order of which the case is still pending. Tensions have been on the rise ahead of the U.S. election which is to take place in November.