US President Donald Trump has announced that an agreement has been struck to allow TikTok to continue operating in the United States, despite months of uncertainty over the app’s future.
Speaking to reporters before departing the White House for a state visit to the UK, Trump said:
“We have a deal on TikTok. I’ve reached an understanding with China, and I’ll be speaking with President Xi on Friday to finalise the details.”
A Long-Running Dispute
TikTok, owned by Chinese technology giant ByteDance, has faced mounting pressure from Washington over national security concerns. US lawmakers have argued that American user data could be accessed by the Chinese government, a claim ByteDance strongly denies.
In April 2024, Congress passed legislation requiring ByteDance to divest its US operations or face a nationwide ban. The law was upheld by the Supreme Court earlier this year, leaving the company under intense scrutiny.
Although Trump initially supported banning the platform, he has since shifted his position, repeatedly postponing enforcement of the ban since January.
Structure of the Deal
According to CNBC, the new arrangement is expected to involve a mix of existing stakeholders and new US-based investors. The transaction is expected to close within the next 30 to 45 days.
US tech firm Oracle, which already provides TikTok’s cloud hosting services, is expected to remain a central part of the deal. Ensuring American data is stored within the US has been one of Washington’s primary demands.
A US trade delegation also announced progress this week in Madrid, saying a “framework” had been reached with Chinese negotiators as part of wider economic talks.
China’s Position
Beijing has confirmed that a preliminary agreement exists but insisted that Chinese companies’ rights would not be compromised.
Wang Jingtao, deputy head of China’s Cyberspace Administration, told reporters that the arrangement involves licensing TikTok’s algorithm and related intellectual property.
“The Chinese government will, according to law, examine and approve all matters involving TikTok, including technology exports and licensing of IP,” Wang said.
What Comes Next
The White House has not yet disclosed the identity of the buyer for TikTok’s US assets. With the current deadline for a sale expiring on 17 September, a final announcement is expected soon.
TikTok briefly went offline in January when the initial ban came into effect but was restored after just one day when enforcement was paused. ByteDance has continued to resist calls for a full divestment, insisting its American operations are run independently of Beijing.
For now, millions of TikTok’s US users appear to have won a reprieve—but the future of the app remains tied to tense negotiations between Washington and Beijing.
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