Does TikTok have a chance to stay in the US after Donald Trump's victory?

According to experts and industry insiders, TikTok's chances of continuing to operate in the US have improved significantly after Donald Trump was elected to a second term as president.

This not only brings a new ray of hope to the popular short video app, but also contributes to the soaring value of its parent company, ByteDance. The increase in ByteDance's valuation, now estimated at as much as $300 billion, reflects market confidence that the political environment under Trump could be more favorable for TikTok in the US, easing concerns about the previous ban.

Regarding this issue, Mr. Cameron Johnson, senior partner at TidalWave Solutions (USA) business consulting firm and an American expert with more than 20 years of business experience in China, commented that the future of TikTok, a short video platform facing many challenges, has become "much brighter" after Donald Trump's victory.

Johnson stressed that the change in the political landscape could open up new opportunities for TikTok to overcome regulatory hurdles and further solidify its position in the US market. The new administration could require TikTok to make certain concessions, such as storing data locally or adjusting how it manages its operations. However, the possibility of a complete ban on TikTok seems unlikely, given the important role the platform played in supporting them during the recent election campaign.

In particular, keeping TikTok in the US not only helps ease tensions between the parties, but also gives Trump a significant advantage in bilateral negotiations with the Chinese government. This decision can be used as a negotiating tool, facilitating other agreements related to trade, technology, and national security, while demonstrating goodwill from the US side in seeking cooperation instead of direct confrontation.

A year before the US presidential election, TikTok's leadership has made adjustments to its content moderation policy to be more supportive of conservative views, according to The Information. This move is believed to be aimed at giving an advantage to Trump and his supporters, marking a strategic move that could impact the political and social media landscape in the US.

While Trump attempted to ban TikTok during his first term on national security grounds, he unexpectedly joined the platform in June this year and quickly attracted more than 14 million followers. By September, Trump even asserted that voting for him was not just about supporting policy but also a way to "save TikTok," sending a clear message to young voters and the platform's user community.

According to ABC News, Karoline Leavitt, a spokeswoman for Donald Trump's transition team, said Mr. Trump is committed to "fulfilling the promises made during the election campaign." However, she did not reveal further specific details about the plans or actions expected in the near future.

TikTok’s more positive outlook has helped push the value of its parent company, ByteDance, to about $300 billion, according to a report from The Wall Street Journal over the weekend. The increase, which was made possible by a new round of share buybacks aimed at institutional investors, shows the market’s strong belief in the growth potential and stability of the popular short-video platform.

This marks a significant increase from the $268 billion valuation of ByteDance’s previous share buyback in December 2023. However, it is still lower than the $400 billion peak that ByteDance reached in 2021, when the company was considering an international listing. The difference reflects both the challenges facing ByteDance and its future growth prospects.

TikTok and its parent company ByteDance are facing a major legal challenge to a law signed by President Joe Biden in April that requires them to sell the short-video app by January or face being banned from U.S. app stores. The case has been referred to a federal appeals panel, with a decision expected in December to pave the way for any appeal to the Supreme Court.

TikTok has repeatedly said that a sale is impossible and will not happen. After Donald Trump demanded a sale in 2020, the Chinese government quickly revised its export control list, adding two core technologies that TikTok uses extensively. The move was designed to prevent divestment from the platform, cementing China's control over the globally popular app.

Phan Van Hoa