Trump warned he could hit China with 100% tariffs if it intervened and blocked a deal to allow 50% U.S. ownership of TikTok.

Chinese authorities appear to be softening their stance on the fate of TikTok, possibly paving the way for Beijing-based ByteDance to begin talks with American investors, according to people familiar with the matter.

On Sunday, before the inauguration, Trump suggested that a joint venture was the solution to the TikTok problem. Trump wrote on his Truth Social platform that he “would like the United States to have 50% ownership position in a joint venture” and said that would keep TikTok in “good hands.”