The protracted dispute over the ownership and data security of TikTok’s US operations has reached a resolution. The United States and China have reached a conclusive agreement on the matter, according to US Treasury Secretary Scott Bessent. This development stands as a significant landmark in the ongoing negotiations between the two nations concerning the popular video-sharing application.
Scott Bessent confirmed the development in a discussion on CBS’s ‘Face the Nation’. The formal endorsement of this transaction is expected to take place during an upcoming bilateral meeting in Korea between President Donald Trump of the US and China’s President Xi Jinping.
Bessent highlighted that the deal was finalised during negotiations in Madrid. While he did not divulge further details, he confirmed that the TikTok deal forms part of a larger trade framework currently under negotiation between Washington and Beijing. The trade framework is expected to also cover issues pertaining to agriculture, access to technology, and the control of fentanyl.
The agreement follows an executive order issued by President Trump on 25 September. The presidential decree paved the way for a fresh American-led ownership structure for TikTok, with US investors set to hold a majority stake.
Bessent, tasked with securing Chinese approval for the transaction, expressed confidence that the last two days of negotiations had successfully achieved this goal. The rumoured value of the deal is around $14 billion, allowing US and international investors to secure a 65% stake in TikTok’s US business. Consequently, this leaves ByteDance and other Chinese shareholders with a stake of less than 20%.
Under the new agreement, control over TikTok’s algorithm and six of the seven board seats will rest with the American owners. Notable individuals such as Rupert Murdoch and Oracle founder Larry Ellison are among the investors backing the acquisition. There are also speculations about Barron Trump, the president’s 19-year-old son, being a potential board member.
TikTok, owned by Beijing-based ByteDance, has been a focal point of geopolitical contention since President Trump’s first term. The president sought to ban the app citing national security concerns. His successor, Joe Biden, signed a bipartisan law banning TikTok in April 2024, but its enforcement was repeatedly postponed to allow time for a transfer of ownership.
President Trump’s arrival in Malaysia for the ASEAN summit coincides with the timing of this agreement. The summit is part of a five-day tour of Asia, culminating in a one-on-one meeting with President Xi later this week. The leaders are anticipated to discuss a range of issues, including soybean and agricultural purchases, the US trade deficit, and the American fentanyl crisis, which has been a justification for maintaining a 20% tariff on Chinese imports.
Analysts believe that the agreement over TikTok is a strategic move to show progress in the US-China negotiations before more complex trade talks later this year. This marks a significant step in the resolution of a long-standing issue between the two global powers. As the world watches, the outcomes of these negotiations could have far-reaching implications for the global economy and the future of tech diplomacy.
