President Donald Trump on Tuesday announced an agreement between the United States and China to keep TikTok operational. Three sources familiar with the matter revealed that the deal closely resembles one discussed earlier this year.
TikTok’s American Assets To Be Transferred
The agreement requires TikTok’s American assets to be transferred from China’s ByteDance to US ownership. This step potentially ends a dispute that dragged on for nearly a year. The app, which counts 170 million American users, has been at the center of political and economic tensions.
Breakthrough After Months of Talks
A deal marks a breakthrough after months of intense negotiations between the world’s two largest economies. Both sides have sought to defuse a trade war that has rattled global markets. Trump confirmed at a White House briefing that several large companies want to buy TikTok. However, he avoided providing further details.
Deadline Extended by White House
Originally, TikTok faced a September 17 deadline to sell or shut down its US operations. However, the White House extended the deadline until December 16. The extension gives ByteDance an additional 90 days to finalise the complex transfer of assets.
Structure of the New Entity
The Wall Street Journal reported that TikTok’s new US entity will have an American-dominated board. One member will be appointed by the US government. This structure mirrors a recent national security agreement approved by the Trump administration during the Nippon Steel and US Steel deal. That deal also granted the government a “Golden Share.”
Legal and Political Considerations
Any final deal may still require approval from the Republican-controlled Congress. Lawmakers previously passed legislation in 2024 requiring TikTok’s divestiture. The law addressed concerns that the Chinese government could access American user data or influence operations.
Ownership Distribution and Security Safeguards
Under the deal’s framework, ByteDance will retain a 19.9% stake, just under the 20% legal threshold. US Treasury Secretary Scott Bessent confirmed that most commercial terms have been agreed since March. He assured that proper safeguards will protect US national security while also addressing Chinese interests.
