China hints US TikTok deal is not done as Creators eye new risks

Statements by a Chinese official point to a delay in the U.S. TikTok deal scheduled to close January 22. Whatever the timeline, new ownership and restrictions pose new risks for musicians, marketers, and all creators who rely on TikTok for discovery and fan engagement.

Regarding reports that TikTok has signed agreements for a new US joint venture, a spokesperson for China’s Ministry of Commerce told the official China Daily:

“The Chinese government hopes that relevant parties can reach a solution regarding TikTok that complies with Chinese laws and regulations and achieves a balance of interests.”

While acknowledging that a framework for the deal had been reached, He Yongqian “expressed hope that the US side will work with China in the same direction and earnestly fulfill its relevant commitments” and “urged the US to provide a fair, open, transparent, and non-discriminatory business environment for the continuous and stable operation of Chinese enterprises in the United States, so as to promote the stable, healthy, and sustainable development of China-US economic and trade relations.”

Particularly given the ongoing economic, trade and diplomatic battles between the countries, China appears to be signaling that the deal is not final.

US TikTok Deal Brings New Risks For Musicians, Marketers & All Creators

Under proposed structure, TikTok’s U.S. operations will be controlled by a newly formed American-led entity. Companies like Oracle (15%) and the private equity firm Silver Lake (15%) will play a central role alongside Abu Dhabi investors MGX. Chinese parent ByteDance would retain a minority stake. However, its influence over technology, algorithms, and product direction is expected to be reduced.

That shift alone raises serious questions for creators.

US vs Global Reach: Who Controls The Algorithm?

TikTok’s power in music discovery has always been tied to its recommendation engine — the “black box” that can turn an unknown track into a global hit overnight. A forced separation, retraining, or replacement of that algorithm could dramatically change how content spreads. It might also affect who gets reach and whether music continues to travel as efficiently as it has over the past five years.

That many of TikTok’s new owners have long ties to President Trump and ultra-conservative issues is also a major concern.

New TikTok App

Even more disruptive is the likelihood of a new or modified U.S.-specific TikTok app launching after January 22. If that happens, creators could be forced to navigate:

• Lost followers who do not move to a new app
• Fragmented audiences between apps, versions and territories
• Reset engagement metrics, follower counts and recommendation signals
• New content rules, moderation standards, or monetization terms

For musicians, this uncertainty cuts directly into marketing strategy. TikTok has become a core layer of release planning, tour promotion, and fan acquisition. Any interruption or fundamental change in how discovery works could reduce the platform’s value overnight. This is especially true for emerging artists without label support.

Promoters and marketers face similar risks. Campaigns built around TikTok trends, audio reuse, and short-form virality may need to be re-engineered quickly. This may happen if the platform’s mechanics shift under new ownership. Paid tools, analytics, and targeting options could also change as the new U.S. entity seeks to reassure regulators and advertisers.

Bottom Line

This deal may keep TikTok online, but it does not guarantee continuity.

For the music industry, the next phase of TikTok looks less like stability and more like a controlled experiment. Creators are absorbing much of the risk while governments and corporations reshape the platform behind the scenes.

Musicians, marketers, promoters, and creators would be wise to treat January 22 not as an ending, but as the start of a volatile transition.

Bruce Houghton is Founder & Editor of Hypebot, Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of Skyline Artists.