US and China Near Breakthrough TikTok Agreement
▼ Summary
– The US and China have agreed on a framework to transfer TikTok to US-controlled ownership, as announced by Treasury Secretary Scott Bessent.
– This deal follows months of negotiations and multiple extensions granted by President Trump to avoid a ban on the app.
– It remains unclear whether this announcement meets the legal requirements for divestiture or if the deadline will be formally extended.
– Reports indicate Oracle and other investors are involved in the bid, with ByteDance retaining a minority stake, and TikTok is developing a US-only algorithm.
– Trump stated on Truth Social that the meeting went well and a deal was reached to save the company popular with young Americans.
A significant breakthrough appears imminent in the long-running negotiations over TikTok’s future in the United States. Treasury Secretary Scott Bessent announced from Madrid that American and Chinese officials have established a framework agreement to transfer control of the popular video-sharing platform away from its Chinese parent company. This development signals a potential resolution to the high-stakes standoff that has placed the app under threat of a nationwide ban.
According to Secretary Bessent, the proposed arrangement involves shifting TikTok to U.S.-controlled ownership, a move designed to address longstanding national security concerns. President Trump is expected to finalize details with Chinese President Xi Jinping later this week, just two days after the current divestiture deadline expires. The announcement follows a series of deadline extensions granted by the administration as both sides worked toward a compromise.
This preliminary understanding culminates months of complex and often contentious discussions between TikTok’s leadership and U.S. authorities. The app narrowly avoided prohibition in January, receiving repeated reprieves to negotiate a solution compliant with the Protecting Americans from Foreign Adversary Controlled Applications Act. Whether this new framework will fully satisfy the law’s requirements or trigger another extension remains uncertain.
Bessent acknowledged that the two nations are “very close” to an agreement, though he noted that Chinese negotiators had presented “very aggressive” demands during talks. Previous attempts to broker a deal earlier this year collapsed amid broader trade tensions. Recent reporting indicates that Oracle, along with investment firms Susquehanna International Group and Andreessen Horowitz, may lead a consortium to acquire TikTok, with ByteDance retaining a minority stake. Separately, TikTok is said to be developing a U.S.-specific version of its app using algorithms trained exclusively on American user data.
In a post on his Truth Social platform, President Trump characterized the bilateral meeting as “VERY WELL” and confirmed that a tentative arrangement had been reached concerning a “certain” company beloved by American youth.
(Source: The Verge)
