TikTok Sale Likely to Be Rejected by China

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The Chinese government is likely to oppose any attempt by the Biden administration to force TikTok’s Chinese shareholders to sell their stakes in the hugely popular app, said China-based lawyers and investors, setting the stage for a protracted standoff between Beijing and Washington over the future of TikTok.

“Why would China agree? Would you agree if you were in charge in Beijing?” said one Chinese tech founder, who added that Beijing would almost certainly oppose the sale of TikTok to a non-Chinese owner.

Meanwhile, there were signs the administration’s sale demand could hurt TikTok’s business momentum. San Diego–based marketing consultant Kevin Simonson said several advertisers he works with are opting against increasing their ad spending on TikTok while the situation plays out.