Trump's willingness to let TikTok 'go dark' motivated China to make deal, Bessent says

by · CNBC

Key Points

  • Treasury Secretary Scott Bessent said President Donald Trump was willing to let TikTok "go dark."
  • The White House extended the divestiture deadline for TikTok parent company ByteDance to Dec. 16.
  • Bessent said Tuesday that the commercial terms of the deal between ByteDance and the new investors had been done "in essence" since March or April.

Treasury Secretary Scott Bessent said Tuesday that President Donald Trump was willing to let TikTok cease operating in the U.S., and that it was "what turned the tide" in the deal framework with China.

"President Trump made it clear that he would have been willing to let Tiktok go dark, that we were not going to give up national security in favor of the deal," Bessent told CNBC's "Squawk Box.

The White House later Tuesday announced an extension of the divestiture deadline for TikTok parent company ByteDance to Dec. 16. During that time, the Department of Justice will not enforce the law requiring the company to divest the app's U.S. operations or potentially be shut down in the country.

It was the fourth time Trump has altered the deadline, with the most recent cutoff date being Sept. 17.

Bessent said Tuesday that the commercial terms of the deal between ByteDance and the new investors had been done "in essence" since March or April.

After Trump's massive tariff announcement on April 2, the Chinese put the deal on hold, he said.

Read more CNBC tech news

Trump's tariff and trade threats, as well as chip restrictions, have weighed on relations between the world's biggest economies, but the deal for TikTok could mark a turning point, with Trump and Chinese President Xi Jinping expected to speak Friday to finalize the deal.

"We were able to reach a series of agreements, mostly for things we will not be doing in the future that have no effect on our national security," Bessent said Tuesday.

Though Trump may be open to letting the app go dark, the White House started its own TikTok account last month. The administration has nearly 1 million followers on the platform.

"The kids wanted it so badly," Trump said outside the White House on Tuesday. "I had parents calling me up. They don't want it for themselves. They want it for their kids. They say if I don't get it done, they're in big trouble with their kids."

A number of potential U.S. owners have been floated in the past several months, with Trump voicing support for Oracle Chairman Larry Ellison or Tesla CEO Elon Musk. 

CBS News reported Monday that Oracle was among "multiple companies" in the potential deal, citing sources.

Oracle is already key to TikTok's web infrastructure, Reuters reported in January.

The news service said the White House was lining up a deal with Oracle and a group of outside investors to take over the app's U.S. operations, with the cloud giant handling data collection and software updates.

Don’t miss these insights from CNBC PRO