US and China Reach TikTok Deal to Avoid Shutdown

WASHINGTON, D.C. — A framework deal has been reached between the U.S. and China to keep TikTok operational in the United States. The announcement comes from U.S. Treasury Secretary Scott Bessent, who spoke after negotiations in Madrid concluded this week.

As part of the proposal, a consortium of U.S.-based tech companies and investors, including Oracle, Andreessen Horowitz, and Silver Lake, will create a new U.S. entity to operate TikTok domestically. This group is expected to hold an approximately 80% stake in the app, significantly reducing Chinese ownership.

The plan aligns with a prior agreement made in April, which was disrupted when President Donald Trump imposed tariffs on China. Sources indicated that a majority U.S. board would manage the platform, with one member appointed by the Trump administration.

Despite the optimistic discussions, details of the deal remain speculative and may change. A senior White House official noted, “Any details of the TikTok framework are pure speculation unless announced by this administration.”

Trump’s potential delay of a TikTok ban has prompted multiple extensions since its original announcement in January. The most recent extension occurred to prevent the app from going dark Wednesday, which was the deadline set by the previous extension.

On Tuesday, Trump signed an order extending the TikTok ban, pushing it to December 16, 2025. The US President aims to finalize the agreement during an upcoming phone call with Chinese President Xi Jinping on Friday.

The negotiations centered around U.S. national security concerns, specifically regarding data access and TikTok’s algorithm. During talks, China’s Deputy Director of the Central Cyberspace Affairs Commission, Wang Jingtao, noted that both parties agreed on addressing intellectual property rights associated with TikTok’s algorithm.

As TikTok continues to maintain functionality for its 170 million users in the U.S., Trump has emphasized that the deal would protect national security while promoting American interests.

With new ownership on the horizon, U.S. investors are preparing to take a leading role, while ByteDance, TikTok’s Chinese parent company, faces mounting pressure to comply with the terms to avoid a shutdown.

Bessent remarked, “I think it is highly satisfactory for U.S. interests,” indicating a positive outlook for the deal’s contributions to both economies.