TikTok’s Ownership Transition Framework Agreed Upon by U.S. and China
The Trump administration has announced that a preliminary agreement has been reached between the United States and China concerning the ownership of TikTok.
This agreement aims to shift TikTok’s control from its parent company, ByteDance, to U.S. ownership, addressing concerns over national security related to data access by the Chinese government.
U.S. Treasury Secretary Scott Bessent confirmed this development after trade discussions in Madrid, indicating that the agreement was made just ahead of the September 17th deadline. If this deadline had passed without a deal, ByteDance would have had to divest TikTok in the U.S. or face potential closure.
In a post on Truth Social, President Donald Trump hinted at the announcement, stating: “The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly. A deal was also reached on a ‘certain’ company that young people here very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!”
Bessent added that “it’s between two private parties, but the commercial terms have been agreed upon.” Although specifics of those terms have not been made public, he indicated that U.S.-based ownership could be imminent.
Trump is expected to discuss the deal with Chinese President Xi Jinping on Friday for an official completion.
The urgency for this agreement arises from a law passed last year that prohibits major app store operators like Apple and Google from allowing TikTok in the U.S. due to its designation as “foreign adversary-controlled,” considering ByteDance’s Chinese base.
There have long been concerns from U.S. officials about the potential for Beijing to access data from American users via TikTok, with fears that the app could be used to disseminate propaganda favoring the Chinese Communist Party (CCP).
Previously, TikTok was set to shut down in January, but Trump intervened with multiple temporary extensions, allowing ByteDance more time for negotiations.
Meanwhile, China’s chief trade negotiator, Li Chenggang, has confirmed that both nations are aligned on a “basic framework consensus,” while emphasizing that China “will never seek to reach any agreement at the expense of its principled stance, corporate interests, and international fairness and justice.”
Trump has previously mentioned that figures like Tesla CEO Elon Musk or Oracle’s Larry Ellison might be potential buyers of the platform, although details about the agreement’s framework are still somewhat vague.
If finalized, this deal could potentially bring closure to the ongoing complexities surrounding TikTok in the U.S., addressing long-standing worries over Chinese influence and data security implications for millions of American users.
