Sell TikTok to get tariff relief: Trump tells China
What's the story
US President Donald Trump has proposed slashing tariff on Chinese goods, provided China allows a US firm to purchase TikTok's operations.
The proposal comes as trade tensions between the two countries escalate, with China criticizing US tariffs and warning of possible economic repercussions for American farmers and defense industries.
The trade dispute escalated when China imposed reciprocal 34% tariff on US goods, mirroring those imposed by the US on Chinese imports.
Presidential remarks
Trump's comments amid trade tensions
Trump accused China of "panicking" amid the tariff dispute. He offered a deal: if China allowed a US company to buy TikTok, he'd reduce tariff on Chinese goods.
Earlier this week, Trump hinted at possible tax relief if Beijing cooperated with his TikTok strategy.
The announcement came after he decided to extend the deadline to ban TikTok by 75 days, amid talks over a broader trade agreement with China.
TikTok's fate
ByteDance confirms ongoing discussions with US government
Despite the previous administration's ban, TikTok with 170 million American users, resumed operations after Trump intervened.
A representative for ByteDance, TikTok's Chinese parent company said that it had been in "discussion with the US Government regarding a potential solution for TikTok US."
However, they cautioned that an agreement had not yet been finalized and would require approval from Beijing.
Official response
China's condemnation of US tariffs
The Chinese government released a formal statement condemning the US's use of tariffs.
State-run Xinhua News Agency reported that Beijing believes these measures severely infringe upon the rights of trading partners and violate World Trade Organization (WTO) rules.
The country expressed strong opposition to what it described as US unilateralism in trade.