TikTok Faces Shutdown Threat in U.S. Amid Algorithm Export Standoff with China
August 21, 2025
TikTok's parent company ByteDance and the Trump administration are exploring options like creating a U.S.-only version of the app or a separate algorithm to operate independently of Chinese control, though the legal and technological feasibility remains uncertain.
This U.S.-only version could significantly change TikTok's features and functionality, especially if it involves a separate algorithm.
In the broader geopolitical landscape, the U.S. is considering investments in chipmakers like Nvidia and Intel under the CHIPS Act, which could pose risks to taxpayers amid industry losses.
Several major companies and political figures are involved in ongoing legal and political developments, including Target's CEO stepping down, a legal dispute over Uncle Nearest whiskey, and President Trump calling for the resignation of Federal Reserve Governor Lisa Cook amid economic tensions.
Potential deals involving TikTok might include arrangements that maintain Chinese control while offering political benefits, but such deals could violate U.S. law and face legal scrutiny.
The dispute over TikTok highlights broader geopolitical tensions regarding technology control and national security concerns related to Chinese tech companies operating globally.
AI startup Darrow is leveraging artificial intelligence to identify potential class action lawsuits by analyzing online complaints, aiding attorneys in case discovery and plaintiff recruitment, with rapid expansion and significant revenue.
As the Trump administration's extension period nears its end, there is a risk that TikTok could be forced to shut down in the U.S. unless a sale or agreement is finalized, with further extensions still possible.
China has explicitly stated that TikTok's core short video algorithm, especially the 'For You' feature, is not for sale due to legal prohibitions on exporting such technologies, complicating negotiations with U.S. authorities.
Despite U.S. efforts to push for a sale, China's firm stance indicates that TikTok's core algorithm will remain under Chinese control, as laws prohibit exporting this technology.
China Daily has reiterated that Chinese laws prevent the export of TikTok's core algorithm, which is central to the app's appeal and functionality, making a sale to U.S. entities unlikely.
If no sale or agreement is reached, TikTok may lose access to its core algorithm, potentially altering its functionality and appeal in the U.S.
Summary based on 2 sources
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Sources

Forbes • Aug 21, 2025
Forbes Daily: China Says TikTok's For You Algorithm Won’t Be Sold
Forbes • Aug 20, 2025
Why China Is Dunking On The Trump Administration's New TikTok Account