TikTok US deal agreed with China after trade talks

The United States and China have reached a deal on the Chinese‑owned social‑media platform TikTok, two years after the U.S. Congress threatened to ban the app. The announcement was made by the U.S. Treasury Secretary—​not Scott Bessent—​following trade talks with Beijing in Spain. These negotiations are part of a broader effort to address concerns about TikTok’s ownership and the potential national‑security risks posed by its parent company, ByteDance.

Washington has been urging ByteDance to sell its controlling stake in TikTok to a U.S.‑based entity, citing Chinese laws that require companies to hand over data upon government request. The goal of the agreement is to transfer TikTok’s ownership from ByteDance to a U.S. buyer, although no purchaser has been officially named. Media reports suggest that Oracle, a major U.S. tech firm, could be part of a consortium that would allow TikTok to continue operating in the United States.

A key point of contention has been TikTok’s algorithm, which determines the content shown to users. China’s representative indicated that there is now consensus on authorizing the use of this algorithm. The agreement also includes a “basic framework consensus” to resolve the TikTok issue, reduce investment barriers, and promote economic and trade cooperation between the two countries.

The development follows Congress’s approval of a ban on TikTok unless ByteDance divests its stake, a move driven by concerns that Chinese authorities could access sensitive user data. The deal is expected to be finalized during a call between the U.S. President and Chinese Premier Xi Jinping, marking a significant step toward resolving the dispute. It underscores ongoing U.S. efforts to address national‑security concerns related to Chinese technology firms and is viewed as a positive signal for U.S.–China trade relations, aiming to lower investment obstacles and foster economic collaboration. As details emerge, monitoring the implementation of the agreement and its impact on the broader technology industry will be essential.