Treasury Secretary Scott Bessent just revealed the hardball tactic that broke China's resistance in TikTok negotiations. President Trump's credible threat to let the app go dark in America forced Beijing back to the bargaining table, setting up a crucial Friday call between Trump and Xi Jinping to finalize the deal that could reshape social media.
The TikTok standoff just shifted dramatically. Treasury Secretary Scott Bessent revealed Tuesday morning that President Trump's willingness to completely shut down TikTok in America is what finally forced China's hand in negotiations that had stalled since April.
"President Trump made it clear that he would have been willing to let TikTok go dark, that we were not going to give up national security in favor of the deal," Bessent told CNBC's Squawk Box. That credible threat, he said, "turned the tide" in getting Beijing back to serious talks.
The timeline Bessent laid out shows just how much geopolitics tangled up what should have been a straightforward business transaction. The commercial terms between ByteDance and potential U.S. buyers were essentially locked in by March or April. But then Trump unleashed his massive tariff announcement on April 2, and China immediately put the TikTok deal on ice.
"After Trump's massive tariff announcement, the Chinese put the deal on hold," Bessent explained. It was classic diplomatic hostage-taking - Beijing using TikTok as leverage in the broader trade war.
But Trump called their bluff. While previous administrations might have blinked, Trump's team made clear they'd rather see TikTok disappear entirely than compromise on national security. The irony? Trump's own White House launched a TikTok account last month and has nearly 1 million followers.
Now the deal is rushing toward the finish line. Trump and Chinese President Xi Jinping are scheduled to speak Friday to finalize terms, just one day before the September 17 deadline when TikTok could face a complete U.S. ban. U.S. Trade Representative Jamieson Greer hinted Monday that more time might be needed, but Bessent's comments suggest the framework is solid.
Oracle is emerging as the frontrunner to take control of TikTok's U.S. operations. CBS News reported Monday that the cloud giant is among "multiple companies" in talks, with Oracle handling the technical backbone while outside investors provide the capital. This makes sense - Oracle already manages TikTok's web infrastructure and has deep ties to the intelligence community.
