law that would force the social media platform to break ties with its China-based parent company, ByteDance, in a move that is almost certainly backed by Chinese authorities. The legislation, signed by U.S. President Joe Biden, could allow Washington to target other China-related apps as well, such as the popular e-commerce platform Temu.

With 170 million American users, TikTok has vowed to challenge the new law, which requires ByteDance to divest its stakes within a year to avoid a ban. The company has characterized the law as an infringement on the free speech rights of its users, most of whom use the app for entertainment. TikTok believes that the facts and the law are on their side and they will ultimately prevail in the legal battle.

The fight over TikTok has increased tensions between the U.S. and China, with both countries vowing to protect their economic and national security interests. Lawmakers in the U.S. are concerned that Chinese ownership of the app could allow Beijing to exert unwanted influence, especially on young minds.

Should a legal challenge fail, observers say Chinese authorities are unlikely to allow a sale of TikTok, as it could be seen as surrendering to Washington. Beijing does not want to lose the high-profile case of TikTok, which is evidence of China's tech powers on the global stage. National dignity is at stake, and it could take precedence over the financial interests of ByteDance investors.

If a sale of TikTok's U.S. business does occur, it is expected to be a challenging and messy process. The price tag for TikTok's U.S. business is unknown but is expected to be high enough to limit potential buyers. There is uncertainty about what would happen with the TikTok algorithm if a sale were to occur, as ByteDance would be barred from controlling it in a U.S. spinoff.

Experts believe Chinese authorities would block any sale of the algorithm under export regulations revised in 2020. Some have suggested that TikTok would need to be rebuilt in the U.S. using new technology, but it is unclear how well this could replicate the current user experience. Despite potential challenges, TikTok is preparing to fight the U.S. law in a legal battle that could drag on for years.