Hajra Naz
The United States and China are preparing to move forward with a long-awaited TikTok deal, according to U.S. Treasury Secretary Scott Bessent.
Bessent confirmed that both countries have reached a final agreement, saying it will be “consummated” by President Donald Trump and Chinese President Xi Jinping during their meeting in Korea on Thursday.
“We reached one in Madrid, and I believe that as of today, all the details are ironed out,” Bessent said during an interview on CBS’s Face the Nation. “My goal was to get the Chinese to agree to approve the transaction, and we’ve successfully done that over the past two days.”
Read More: Trump’s TikTok Proposal Echoes the Deal Biden’s White House Previously Rejected
How the Deal Came Together
Talks between the U.S. and China have been going on for months. Last month, officials from both countries met in Madrid and created a framework agreement. Soon after, President Trump signed an executive order to help complete the deal.
The Trump administration has long pressured TikTok’s parent company, ByteDance, to sell its U.S. operations or face a ban. The main issue is data security. U.S. officials fear that Chinese ownership could give access to American users’ private data.
Under the terms of the new agreement, TikTok’s U.S. operations—including its algorithm, source code, and content moderation systems—will be overseen by a new American-controlled board.
Tech giant Oracle, led by Trump ally Larry Ellison, will manage TikTok’s data security and cloud infrastructure. Other U.S. investors, including Fox Corp., Andreessen Horowitz, and Silver Lake Management, are also part of the joint venture. Trump has reportedly confirmed Fox’s involvement himself.
Read More: Executive Order Signed by Trump Supports TikTok’s Move to US Ownership
Broader U.S.-China Trade Context
Bessent spoke from Kuala Lumpur, Malaysia, where U.S. and Chinese trade teams also announced progress on a wider trade framework, including discussions about tariffs and rare earth minerals.
U.S. trade negotiator Jamieson Greer told reporters that the talks covered several issues:
“We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics,” Greer said.
Rare earth minerals are vital in making semiconductors, batteries, and other high-tech products. China has hinted it may tighten export controls on these materials, adding pressure to ongoing trade negotiations.
What This Means
The TikTok deal could mark a turning point in U.S.-China tech relations. If finalized, it would ease years of tension over data privacy and control of global social media platforms. However, it also raises new questions about how TikTok will operate in both countries — and whether its global user base will notice major changes.
Read More: Will TikTok’s Algorithms Face Manipulation by the US Government?
FAQs
1. What is the TikTok deal about?
The deal lets U.S. investors take control of TikTok’s U.S. operations to address national security concerns.
2. When will the deal be finalized?
According to Treasury Secretary Bessent, Trump and Xi will sign it on Thursday in Korea.
3. Who will manage TikTok’s U.S. data?
Oracle will handle data storage and security, ensuring American user data stays within the U.S.
4. Why did the U.S. want ByteDance to sell TikTok?
Officials worried Chinese ownership might risk data privacy and national security.
5. What else did the U.S. and China discuss?
Trade talks also covered tariffs and rare earth minerals, which are key to tech manufacturing.
