US President Donald Trump has granted an extension to China-based ByteDance for the divestment of TikTok's US assets, setting a new deadline of Sep 17 for completion of the sale or facing a ban.

This executive order marks the third time Trump has delayed enforcement of a 2024 law that mandated the sale or shutdown of the popular short-video app. Originally, TikTok was required to divest by Jan 19 unless significant progress was made towards a sale, amidst escalating US-China tensions.

White House press secretary Karoline Leavitt stated, 'President Trump does not want TikTok to go dark. The administration will work over the next three months to ensure the sale closes, allowing Americans to continue using TikTok with confidence in the safety and security of their data.'

TikTok expressed gratitude for Trump's decision, emphasizing the importance of his leadership in keeping the app available. The company is collaborating closely with Vice President JD Vance's office to navigate the sale process.

Trump, recognizing TikTok's role in engaging young voters during the 2024 election, aims to maintain the app's operations in the US. He indicated his intention to extend the deadline during a recent press briefing and expressed optimism that Chinese President Xi Jinping would approve a deal.

Earlier this year, Trump had shown willingness to reduce tariffs on Chinese goods to facilitate a TikTok deal. Talks of spinning off TikTok's US operations into a new American-controlled entity had progressed but stalled due to Beijing's objections to US tariff increases.

The app, used by 170 million Americans, has become a focal point in the broader geopolitical tensions between the US and China. Concerns over data security and potential Chinese government influence on the platform have been raised by US lawmakers.

Some Democratic lawmakers question the legality of Trump's authority to extend the deadline and emphasize that any deal must fully comply with the 2024 legislation.

Trump had previously postponed the deadline to early April and then to Jun 19. The latest extension provides TikTok and potential buyers an additional 90 days to finalize an agreement that would enable the app to continue operating in the US under American ownership.