MOSCOW, April 5 (Bernama-Sputnik/RIA Novosti) -- Chinese authorities have not approved a deal to spin off TikTok's US assets due to recently announced US tariffs on Chinese goods, reported Sputnik/RIA Novosti which quoted a Reuters report, citing two sources familiar with the matter.
The report said the deal was largely finalised by April 2, and would have involved spinning off the social media's US operations into a new US-based company with a majority stake in it held by US investors.
ByteDance's stake in the deal would have been 20 per cent.
The report said the deal has already been approved by TikTok's existing and new investors, ByteDance and the US authorities.
On Friday, US President Donald Trump revealed that he would sign an executive order allowing TikTok to continue operating in the United States for another 75 days as negotiations regarding its acquisition progress.
Later in the day, ByteDance, the Chinese parent company of TikTok, said that it has been in discussions with the US government on a potential way forward to resolve the ongoing issue concerning the video app company operation in the United States.
On Wednesday, US President Donald Trump signed an executive order imposing a 10 per cent base tariff on all imports to the United States starting April 5, while higher, reciprocal tariffs on countries and territories with which the US has the largest trade deficits will take effect on April 9.
NBC News reported on Friday, citing a person familiar with the talks, that Trump's announcement of reciprocal tariffs disrupted a deal for TikTok's US division that had already been approved by the Chinese government.
--BERNAMA-SPUTNIK/RIA NOVOSTI
