TikTok’s algorithm can’t be exported without China’s approval—putting U.S. sale in jeopardy

TikTok’s future in the U.S. is once again up in the air. President Trump recently gave ByteDance an extra 75 days to finalize a deal to sell TikTok’s U.S. operations—an extension that came after negotiations reportedly stalled. Behind the scenes, China appears to be pushing back hard, and it’s not just political posturing.

At the center of the standoff is TikTok’s algorithm, the technology that powers its addictive recommendation system. ByteDance considers it a critical part of its business, and under a Chinese law introduced in 2020, exporting that kind of tech requires government approval. Without Beijing’s green light, the sale—at least in its full form—might never happen.

When asked about the extended deadline, China didn’t hold back. A spokesperson from the commerce ministry said the country “opposes practices that ignore the laws of the market economy, plunder by force, and damage the legitimate rights and interests of enterprises,” Reuters reported, citing a statement on the ministry’s website.

The statement also made it clear that any business arrangement involving TikTok must align with Chinese law, including rules on tech exports.

“The specific business arrangements must comply with Chinese law, including the export of technology, which must be approved by the Chinese government.”

That puts ByteDance in a difficult spot. Selling TikTok without its core algorithm significantly lowers the app’s value. However, exporting it without permission could violate Chinese law. Either way, the road ahead is messy.

U.S. lawmakers aren’t thrilled with the delay either. Some have raised concerns that ByteDance may still have influence over TikTok’s U.S. operations, even after a sale. For them, anything short of a complete severance is a risk to national security.

Meanwhile, Perplexity AI and Reddit’s co-founder are among those who joined the effort to acquire TikTok’s U.S. operations, with the latter positioning himself as a key voice in the push to take control of the platform.

With the clock ticking toward the new deadline, TikTok is stuck between two powerful governments—each trying to call the shots. What happens next could reshape the future of the app in the U.S., or cut it off altogether.