The Chinese Government has expressed a preference for TikTok to be shut down rather than comply with the U.S. Government's forced sale edict. Chinese officials, including foreign ministry spokesperson Wang Wenbin, have accused the U.S. of acting without cause and engaging in bullying behavior that disrupts normal business activity, damages investor confidence, and harms the international economic and trade order. China has vowed to oppose the full sell-off of the app.

TikTok's algorithm is referred to as its 'secret sauce' because it is a powerful system that can quickly detect a user's interests in real-time. This ensures that a more compelling stream of videos is delivered to the user every time they open the app. The algorithm's ability to identify specific visual elements and tailor content accordingly is a key factor in maintaining user engagement and the app's popularity.

Under China's export-control rules, the sale of systematic algorithms is controlled by the Chinese Government. This means that even if TikTok is sold, its back-end systems, including its valuable recommendation algorithm, may not be included in the sale. This could significantly reduce the overall value of the app, as the algorithm is a critical component of TikTok's success and appeal.

Reports, such as one from The Intercept in 2020, have suggested that TikTok's algorithms included parameters designed to suppress posts from users deemed too ugly, poor, or disabled for the platform. While company officials clarified that such parameters were only used in the Chinese version of the app, the capability of the algorithm to identify and act on such traits raises concerns about the platform's impact and the ethical implications of its content curation. This could be a significant issue if TikTok's full algorithmic parameters were to be revealed, especially in the context of a potential sale.

TikTok's valuation varies greatly, estimated to be between $20 billion and $100 billion, depending on the components included in the sale. According to The Wall Street Journal, some investment banks and investors are valuing TikTok at five times its advertising and livestreaming revenue, which was about $22 billion last year. This suggests a potential valuation of $110 billion. However, the absence of TikTok's algorithm in the sale would make it a more risky investment and likely reduce its value, as the algorithm is integral to the app's performance and user engagement.