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TikTok, which has more than 170 million users in the US, has been the focus of months of tense negotiations between Washington and Beijing.
Donald Trump has announced that the United States and China have reached an agreement that will allow TikTok to continue operating in the country, with its American assets set to be transferred from Beijing-based ByteDance to as US ownership. The development could bring an end to a long-running dispute that had left the future of the popular short-video platform in doubt.
TikTok, which has more than 170 million users in the US, has been the focus of months of tense negotiations between Washington and Beijing, taking place against the backdrop of worsening trade relations between the two largest economies in the world. Donald Trump welcomed the breakthrough but refrained from disclosing the specifics of the deal.
Trump to speak to Xi on TikTok deal
The US President said, “We have a deal on TikTok. I’ve reached a deal with China. I’m going to speak to President Xi on Friday to confirm everything up.”
US Congress approval may be required. The agreement is likely to face review in the US Congress, which in 2024 under the Joe Biden administration, passed legislation mandating TikTok’s divestiture due to concerns that the Chinese government could gain access to American user data. Lawmakers have also expressed fears that Beijing might use the app for surveillance or influence operations.
US and TikTok controversy
Although the Donald Trump administration inherited this law, it repeatedly postponed its enforcement. Officials extended the deadline three times, citing worries that an outright ban could frustrate millions of TikTok users and disrupt political messaging.
Donald Trump has himself credited TikTok with contributing to his 2024 re-election victory, and his personal account currently has 15 million followers. The White House also launched an official TikTok account just last month.
What is the US-China TikTok deal?
The deal is expected to be completed within 30 to 45 days and will involve a combination of existing ByteDance investors and new US stakeholders. A similar plan had been considered earlier this year, which would have spun off TikTok’s US operations into a new American company majority-owned by US investors. However, that proposal was shelved after China signalled it would not approve the divestiture, a decision that followed Donald Trump’s announcement of steep new tariffs on Chinese imports, a report by CNBC suggested.
