Positive Comments: The Continuation of TikTok’s US Business Brings Certainty to a Win – Win Situation for Multiple Parties
After four extensions of the ban, numerous policy vacillations, and the game – playing between China and the United States, TikTok’s US business has finally managed to continue. This outcome has sent positive signals to users, merchants, ByteDance, and even the China – US economic and trade relations, and its positive significance deserves full recognition.
Firstly, for users and merchants, the continuation of TikTok’s US business has avoided the shock of a “hard landing” in the market. The US market is one of the core regions of TikTok’s global ecosystem, with over 150 million monthly active users (according to previously published data). Its content community and e – commerce ecosystem have been deeply integrated into users’ daily lives and the operations of small and medium – sized enterprises. If TikTok were to be completely banned, users would face a break in their social and entertainment scenarios, and merchants (especially small and medium – sized sellers relying on TikTok Shop) might lose important traffic and sales channels. The result of “continuation” not only stabilizes users’ expectations but also allows merchants to continue expanding their businesses based on TikTok’s content e – commerce advantages. As mentioned in the news, “merchants believe that the most important thing is the ability to operate continuously”, which directly reflects the market’s core demand for “certainty”. For small and medium – sized enterprises, the stability of the platform is often more crucial than the change of ownership, and the continuation of TikTok precisely provides such stability.
Secondly, for ByteDance, retaining the US market has bought some breathing space for its globalization strategy. TikTok is the core engine of ByteDance’s overseas revenue. In 2024, the overseas business revenue accounted for a quarter of the total revenue, and the US market made a significant contribution (for example, the revenue of TikTok Shop in the US accounted for a quarter of the overall revenue). If the US business were to be divested or banned, ByteDance would not only lose a rapidly growing source of income but also might shake its market positioning as a “global technology company”. Although the final form of ownership (such as whether to divest or how to adjust the equity ratio) is not yet clear, at least the worst – case scenario of “complete withdrawal” has been avoided, giving ByteDance some time to make adjustments. More importantly, through this incident, ByteDance has accumulated experience in dealing with cross – border regulatory risks. For example, it accelerated the layout in markets such as Europe and Latin America under the shadow of the ban (for instance, the monthly active users in Europe have reached 200 million). This “risk – diversification” strategy has begun to show results, providing a more solid foundation for future global expansion.
Finally, from a macro perspective, the “soft landing” of the TikTok issue provides a referable case for China – US economic and trade cooperation. In this incident, China and the United States reached a “basic framework consensus” through negotiations, resolving disputes through cooperation rather than simple “confrontation” or “decoupling”, which is in line with the general trend of the deep integration of the global industrial chain. As the Chinese side stated, “respecting the wishes of enterprises and being glad to see enterprises conduct good business negotiations on the basis of market rules”, the US side also left room for negotiations by extending the grace period of the ban. This attitude of “pragmatically solving problems” provides a positive example for other Chinese – funded enterprises in the United States (especially technology companies) to deal with regulatory risks.
Negative Comments: Multiple Hidden Worries Still Lurk Behind the “Continuation” of TikTok’s US Business
Although TikTok’s US business has managed to continue, the details revealed in the news (such as possible equity adjustments, users’ concerns, and employees’ unease) indicate that this result is not a “perfect solution”, and the hidden worries behind it deserve our vigilance.
Firstly, the “independence” of TikTok’s US business may damage users’ experience and the platform’s ecosystem. As mentioned in the news, TikTok previously planned to launch an independent app “M2” for US users, with an independent algorithm and data system, separated from the global version of TikTok. Although ByteDance said that the relevant news was “inaccurate” and the “M2 plan came to nothing”, users still worry that there may be an “Oracle – version of TikTok” or a “brand – new independent app” in the future. If the US version of TikTok is completely separated from the global version due to regulatory requirements, its content recommendation algorithm will be trained only based on US – local data, which may lead to a decrease in content diversity (for example, users will have difficulty accessing international popular content), thereby weakening the platform’s attractiveness. Some users have clearly stated that “they won’t download the new version” and “want to go back to YouTube”. If this kind of resistance spreads, it may lead to user loss, affecting the platform’s activity and advertising value.
Secondly, equity adjustments and the transfer of control may weaken ByteDance’s long – term competitiveness. According to The New York Times, ByteDance may need to reduce the shareholding ratio of Chinese investors to below 20% and introduce US investors such as Oracle and Silver Lake Capital. If this plan is implemented, ByteDance’s actual control over the US business will be significantly diluted. Although retaining a partial equity can maintain a certain level of income in the short term, losing control means that ByteDance will have difficulty leading the product iteration and strategic direction of the US business (such as the expansion of the e – commerce business), and may even face the risk of technology leakage (for example, the algorithm and user data will be managed by US partners). For a technology company with “technology – driven” as its core competitiveness, the transfer of control may shake the foundation of its globalization strategy. After all, TikTok’s success largely depends on the globally unified algorithm advantage and content ecosystem synergy of ByteDance. If the US business is “cut off”, this synergy effect will be destroyed.
Thirdly, the stability of the employees and the team is facing challenges. As mentioned in the news, TikTok employees are worried about layoffs and team reshuffles after the change of ownership. Some employees even joked that “working at TikTok in North America can demonstrate one’s ability to withstand pressure”. In fact, the business adjustment of multinational enterprises is often accompanied by organizational structure shocks. If new investors intervene, they may require the replacement of management and the optimization of the team (especially the departments closely associated with the Chinese headquarters), which will lead to the loss of core talents and affect business continuity. For example, TikTok’s US e – commerce team originally planned to achieve nearly 200% growth in 2025. If the team is in turmoil, the realization of this goal will face greater uncertainty.
Fourthly, the signal of “setback” in ByteDance’s globalization strategy may affect market confidence. Although TikTok’s US business has managed to continue, the process of “being forced to adjust equity and control” is essentially a compromise of a global enterprise under the regulatory pressure of a sovereign country. This incident may be interpreted as “Chinese technology companies face stricter geopolitical restrictions in globalization”, which will further affect investors’ confidence in ByteDance and other Chinese – funded technology companies. For example, if other markets (such as Europe and India) follow the US regulatory logic in the future and require local data isolation or equity transfer, ByteDance’s global expansion will face more complex challenges.
Advice for Entrepreneurs: Risk Response of Global Enterprises from the TikTok Incident
The “life – and – death situation” of TikTok’s US business provides multi – dimensional inspiration for entrepreneurs, especially on how to deal with regulatory risks, maintain user trust, and ensure business resilience in the global layout. Based on the details of the incident, the following advice is worth referring to:
Incorporate “Government – Business Relations” into the Top – Level Strategic Design: The final result of TikTok confirms the judgment of Professor Nie Huihua from Renmin University of China – “Chinese overseas enterprises need to consider government – business relations as the primary factor”. Before expanding into overseas markets, entrepreneurs need to conduct in – depth research on the political environment and regulatory policies (such as data security laws and anti – monopoly laws) of the target country, actively communicate with local governments and industry associations, and predict possible policy risks in advance. For example, a dedicated government affairs department can be established to regularly evaluate the impact of policy changes on the business and participate in the formulation of industry rules to avoid “passive responses”.
Build a “Diversified” Market Layout: TikTok accelerated the expansion into the European and Latin American markets under the shadow of the ban (for example, the monthly active users in Europe increased to 200 million). This strategy of “not putting all eggs in one basket” effectively reduces the risk of a single market. In the process of globalization, entrepreneurs should avoid over – relying on a single core market and can disperse risks through “regional operations”. For example, regions that are friendly to Chinese – funded enterprises and have stable policies (such as Southeast Asia and the Middle East) can be prioritized as the second growth curve to reduce the degree of dependence on high – risk markets (such as the United States and India).
Strengthen User Stickiness and Ecosystem Barriers: The resistance of TikTok users to the “independent version” reflects users’ demand for a “consistent experience” on the platform. Entrepreneurs need to enhance user stickiness through product innovation (such as personalized recommendation and social interaction functions) and content ecosystem construction (such as supporting local creators) to avoid user loss due to policy changes. For example, a “rapid user feedback response mechanism” can be established to timely collect users’ opinions on product adjustments and maintain the continuity of the product experience as much as possible under the premise of compliance.
Plan the Equity and Control Structure in Advance: The possible equity adjustment of TikTok (such as reducing the shareholding of Chinese investors to 20%) reminds entrepreneurs that they need to plan the equity structure in advance in global financing or cooperation to avoid being forced to transfer control due to external pressure. For example, an offshore holding company can be established, and multi – regional investors (such as Asian and European capital) can be introduced to disperse equity, reducing the impact of a single country’s regulation on control. At the same time, the “right to retain key decisions” (such as product iteration and the use of core technologies) should be clearly stated in the cooperation agreement to ensure the dominance of the business direction.
Attach Importance to the Localization of the Team and Talents: The concerns of TikTok employees about “layoffs” highlight the importance of team stability to the business. In the process of overseas expansion, entrepreneurs should promote the localization of the team (such as recruiting local employees and training local management) and reduce the dependence on expatriate employees from the headquarters. At the same time, a “cross – cultural management mechanism” (such as regularly organizing exchanges between the headquarters and overseas teams) should be established to enhance team cohesion and avoid the loss of core talents due to changes in equity or control.
In conclusion, the “continuation” of TikTok’s US business is the result of a game among multiple parties. It not only reflects the resilience of global enterprises but also exposes the impact of geopolitical risks on business logic. For entrepreneurs, this incident is not only a “crisis case” but also a “risk rehearsal”. In the global competition, only by making advance arrangements and responding flexibly can opportunities be seized in the face of uncertainty.
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