U.S. sets September deadline for TikTok sale or national ban

TikTok’s U.S. fate has rarely felt more precarious. On July 24, Commerce Secretary Howard Lutnick issued what amounted to a stark countdown for the app’s 170 million American users: if China’s government doesn’t sign off by the September 17 deadline on a restructuring deal that gives U.S. stakeholders majority control, TikTok will “go dark” in the United States. “You can’t have Chinese control and have something on 100 million American phones,” Lutnick told CNBC’s Squawk on the Street, underscoring that, absent approval, the video app would effectively vanish from U.S. devices.

Behind that warning lies a law signed by President Biden last April—the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA)—which went into effect on January 19, 2025. It bars U.S. companies from hosting or distributing any app controlled by entities based in a country designated a “foreign adversary,” unless a “qualified divestiture” severs that control; ByteDance’s failure to comply by Jan. 19 triggered automatic ban provisions. The law enjoyed overwhelming bipartisan support in Congress, born of fears that the Chinese Communist Party could exploit TikTok’s algorithm and user data for espionage or influence operations.

Yet enforcement has been repeatedly delayed by executive orders from President Trump, who—despite championing TikTok as a tool to mobilize young voters—has extended the divestiture deadline three times. His latest reprieve, signed June 19, pushed the cutoff to September 17. In announcing that order, Trump professed optimism that Chinese President Xi Jinping would bless a deal “pretty much in the bag,” even though negotiations have sputtered amid reciprocal tariffs and Beijing’s growing unease.

That deal is envisioned to place TikTok’s U.S. operations under American control—potentially via a consortium of existing investors or high‑profile backers whose identities remain undisclosed. In a late‑June Fox News interview, Trump hinted that a “group of very, very wealthy people” stood ready to buy TikTok’s U.S. arm, pending Chinese sign‑off. But with less than two months remaining, progress appears stalled; sources say talks faltered after Beijing balked at any arrangement that might erode its influence over ByteDance.

ByteDance itself insists that a majority of its shares—roughly 60 percent—are held by global institutional investors such as BlackRock, General Atlantic and Susquehanna, with just 20 percent each owned by the company’s founders and employees (including U.S.‑based staff). Yet critics point out that PAFACA deems any app with at least 20 percent foreign‑adversary ownership subject to ban, effectively catching TikTok in its crosshairs until a divestiture is formalized.

From TikTok’s vantage, the stakes are both commercial and reputational. CEO Shou Zi Chew has repeatedly assured U.S. lawmakers—and by extension, users—that ByteDance “is not owned or controlled by any government or state entity” and has “never shared, or received a request to share, U.S. user data with the Chinese government.” But bipartisan skepticism lingers: even House members who praised TikTok’s role in community-building pressed Chew on potential Chinese influence during a March 2023 hearing, where he detailed “Project Texas,” a $1.5 billion effort to firewall American data on Oracle servers under U.S. law.

Should the September 17 deadline pass without a China‑approved deal, TikTok’s U.S. operations will face a swift unraveling: removal from the Apple App Store and Google Play, severed content updates, and a de facto blackout for its American audience. For creators and businesses that have woven TikTok into their marketing strategies, the threat of “going dark” is more than rhetoric—it’s an existential crisis for an ecosystem built on the app’s addictive, scroll‑driven cadence.

As summer fades, all eyes turn to Beijing’s response. Will China acquiesce to a sale that dilutes its control? Or will U.S. regulators enforce the ban, driving TikTok’s U.S. users to rival platforms and igniting fresh debates over data sovereignty and digital free speech? With less than eight weeks to navigate a labyrinth of geopolitics, corporate maneuvering and legal strictures, the clock is ticking—and for TikTok’s American story, the next chapter may begin in darkness.

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