U.S. President Donald Trump revealed a new understanding with China on Tuesday to enable TikTok to continue its operations in the United States. The arrangement mandates the transfer of TikTok’s American assets from China’s ByteDance to U.S. entities, potentially ending a prolonged dispute that has lasted for almost a year.
This deal for the widely-used social media platform, boasting 170 million users in the U.S., marks a significant development after protracted discussions between the world’s top two economies in an effort to ease a broad trade conflict that has unsettled global markets.
During a White House briefing, Trump disclosed, “We have a deal on TikTok … We have a group of very large companies interested in acquiring it,” without elaborating further. This statement comes on the eve of a September 17 deadline for either selling or shutting down the short video app.
Later in the day, the White House extended this deadline to December 16. However, no additional specifics regarding the agreement with China were provided by the White House.
Li Chenggang, China’s international trade representative, stated that both parties have reached a “basic framework consensus” to handle TikTok-related matters cooperatively, reduce investment obstacles, and enhance economic and trade cooperation.
The extension grants ByteDance an additional 90 days to finalize the transfer of TikTok’s American assets to U.S. ownership, indicating that there is substantial work required to complete the intricate transaction.
According to sources familiar with the matter, the U.S. entity will have a board predominantly consisting of Americans, with one member appointed by the U.S. government.
Any potential agreement might necessitate approval from the Republican-controlled Congress, which passed a law in 2024 during the Biden Administration mandating TikTok’s divestment due to concerns that Chinese government could access U.S. user data, potentially enabling espionage or influence operations.
As per the reported details, ByteDance is poised to retain the largest ownership stake at 19.9%, just below the statutory 20% threshold. The Trump administration has refrained from enforcing the law due to fears of upsetting TikTok’s substantial user base and disrupting political communication, leading to multiple extensions of the divestment deadline.
U.S. Treasury Secretary Scott Bessent confirmed on Tuesday to CNBC that the commercial terms of the deal had been effectively settled since around March, with only a few remaining details to be resolved. Bessent emphasized that the deal prioritizes U.S. national security and appears to accommodate Chinese interests.
CNBC reported that the deal is anticipated to be finalized within the next 30 to 45 days, involving existing and new investors in TikTok’s Chinese parent company, ByteDance.
Details align with previous reporting by Reuters in April, outlining a plan to establish a new U.S.-based company majority-owned and operated by U.S. investors to oversee TikTok’s U.S. operations.
Contention over TikTok’s Chinese connections persists, with Washington contending that ByteDance’s ownership links it to the Chinese government. ByteDance has disputed these assertions, highlighting that its data storage and content operations crucial for U.S. users are managed within the U.S.
Oracle is expected to maintain its cloud services partnership with TikTok, as reported by CNBC, with the White House exploring a strategy involving Oracle and external investors to manage the app’s operations to address national security concerns.
A final confirmation of the deal is anticipated following a discussion between Trump and Chinese President Xi Jinping on Friday. Trump indicated in March that his administration was engaging with various groups regarding TikTok’s sale, including Microsoft, Amazon, billionaire Frank McCourt, and a consortium led by the founder of OnlyFans.