FirstFT: US officials race to avert TikTok ban

Good morning. Before we start we wanted to let readers know about a special edition of FirstFT Americas which will be landing in inboxes tomorrow morning. In it, FT experts answer readers’ questions about the incoming Trump administration. Now, today’s agenda:

• US officials race to avert TikTok ban

• China’s growth exceeds expectations

• Netanyahu’s cabinet meets to approve ceasefire

• Fine dining in Antarctica

Officials of the incoming administration of Donald Trump are bracing for a Supreme Court decision before a

A law passed in April last year and due to come into force on Sunday mandates TikTok’s Chinese owner ByteDance to sell its stake in the app or face a ban in the US, where the platform has 170mn users, because of national security concerns.

But Mike Waltz, incoming national security adviser, told Fox News last night that the president-elect was preparing an executive order to ensure TikTok would continue to operate in the US.

A White House official said yesterday the Biden administration does not plan to enforce the ban on Sunday, leaving it up to the Trump administration, though it is not clear if the app will remain online in the absence of a formal extension.

The Supreme Court is currently deciding whether to uphold the divest-or-ban law and allow TikTok to go “dark” on Sunday absent a sale, overturn the legislation or pause it to give the justices more time to make a decision. TikTok denies it poses a national security threat and claims the law violates First Amendment protections for free speech. A decision may come later today.

Trump, who takes office on Monday, has promised to “save the app” and has called for a delay in the implementation of the law. Yesterday it was reported that TikTok chief executive Shou Zi Chew planned to attend Trump’s inauguration, raising expectations of a deal.

ByteDance has refused to sell TikTok’s US operations but this week it was reported that officials in Beijing are discussing using Trump adviser and X owner Elon Musk as a broker in any potential sale.

Meanwhile, TikTok’s US rivals are gearing up for a potential land grab if the app is banned. Advertising executives say Meta and YouTube are set to receive a multibillion-dollar boost to revenues if TikTok is banned.

Join FT experts and guests on Wednesday for a subscriber-only webinar as they discuss the return of Donald Trump to the White House for a second term. Register for free.

And here’s what else we’re keeping tabs on today:

• Israel-Hamas ceasefire: Benjamin Netanyahu’s security cabinet is set to vote on the ceasefire deal for Gaza. Follow developments here.

• Congress: Kristi Noem, the nominee for Secretary of Homeland Security, attends a nomination hearing in front of a Senate committee.

• Companies: State Street, Citizens Financial Group and SLB, the oil services group better known as Schlumberger, report results today.

• Economic data: The IMF releases its World Economic Outlook update ahead of the World Economic Forum in Switzerland next week. The FT will be running a series of events to coincide with the annual gathering in Davos. Learn more here.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. China’s economy grew 5 per cent last year on the back of surging manufacturing, official data released today showed, as companies front-loaded exports in anticipation of higher US tariffs and as Beijing stepped up stimulus efforts. The annual figure, which slightly exceeded economists’ forecasts of 4.9 per cent, trailed last year’s growth of 5.2 per cent. The data provided further evidence of China’s two-speed economy.

2. Donald Trump’s Treasury pick said he would deploy America’s economic power against geopolitical foes as he defended the incoming president’s tariff threats and pushed for looser regulations. Billionaire Scott Bessent also said at a Senate confirmation hearing that failure to extend tax cuts would lead to “economic calamity”.

• More Trump picks: Doug Burgum, nominee for interior secretary, warned that the US could lose the “AI arms race” to China unless it boosted energy generation from fossil fuels.

3. Former Bank of England governor Mark Carney has launched his bid to become prime minister of Canada, where voters remain angry at Justin Trudeau’s handling of the economy. Carney, who also ran Canada’s central bank, pledged to make the country’s economy the strongest in the G7. Here’s more from his first campaign rally in Alberta.

• 🎧 Trump threat: In the latest episode of his podcast, Gideon Rachman talks to Michael Ignatieff, the former leader of Canada’s Liberal party, about its newly hostile neighbour.

4. A SpaceX Starship rocket has exploded after lift-off from Texas, in a setback for Elon Musk’s $350bn space technology company just hours after a successful launch by rival Blue Origin. Videos posted on social media showed the rocket spectacularly disintegrating in a shower of flames over the Turks and Caicos Islands in the Caribbean. Planes in the area were briefly diverted.

5. Scientists have for the first time given a realistic sense of touch to people operating a robotic hand via signals sent from their brain, marking the latest advance in neurotechnology research to help overcome disabilities. The University of Chicago study worked over several years with volunteers paralysed by spinal cord injuries. Here’s more on the findings.

Today’s big read

The multiphase ceasefire deal between Hamas and Israel was first conceived by mediators and publicly endorsed by Biden more than six months ago. But it was Donald Trump’s imprimatur that eventually sealed the agreement and Steve Witkoff, a real estate investor with no experience of diplomacy, was crucial to securing the breakthrough. Felicia Schwartz and Andrew England tell the story of how it was achieved.

We’re also reading . . . 

• ‘Personnel is policy’: Elaine Chao, who served as transportation secretary in Donald Trump’s first administration, explains how to manage a tricky presidential transition.

• ESG under Trump: As the US president-elect returns, the political backlash against sustainable investing has increased again. Can the sector survive Trump 2.0?

• Defence: Uncertainty over spending and fears of disruption from new players are weighing on shares of large contractors.

• Personal finance: It is time to call out credit scores for what they are, writes former FDIC chair Sheila Bair, a hazard to our financial health.

Chart of the day

Gaps in California’s insurance system could lead to serious failures in coverage for the Los Angeles firestorms, while leaving a key segment of the industry virtually unscathed.

Take a break from the news . . . 

Cooking up a Michelin-worthy meal at an out-of-the-way luxury hotel is challenging at the best of times. Then there is White Desert, the fine dining restaurant serving meals at -25°C — in Antarctica.

Source: Economy - ft.com