The long-debated TikTok saga between the United States and China is nearing its conclusion. According to U.S. Treasury Secretary Scott Bessent, both nations have reached a final deal on TikTok, with Presidents Donald Trump and Xi Jinping set to officially “consummate” the agreement this Thursday in Korea. The development marks a significant moment in U.S.–China relations, potentially easing years of tech tension surrounding the popular social media platform.
A Long Road to Agreement
The road to this TikTok deal has been long and complex. The U.S. government, under President Trump, had previously demanded that ByteDance, TikTok’s parent company, either sell its U.S. operations or face a nationwide ban. This move was driven by concerns over data security, content control, and foreign influence, with American officials arguing that user data from U.S. citizens should not be accessible to Chinese authorities.
Last month, during high-level meetings in Madrid, negotiators from both sides reportedly agreed on a framework deal, which paved the way for this week’s finalization. On Sunday’s CBS Face the Nation, Secretary Bessent confirmed, “We reached one in Madrid, and I believe as of today, all the details are ironed out.” He emphasized that both sides had worked diligently to finalize approval terms, setting the stage for Thursday’s signing.
What the TikTok Deal Involves
Under Trump’s executive order, TikTok’s U.S. operations, including its powerful recommendation algorithm, source code, and content moderation systems, will be managed by a new board of directors. The restructuring is designed to ensure that American users’ data remains secure and within U.S. jurisdiction.
Oracle, led by Trump ally Larry Ellison, will oversee TikTok’s security operations as part of the agreement. Other major investors in the newly formed joint venture include Fox Corporation, Andreessen Horowitz, and Silver Lake Management. Trump has publicly confirmed Fox’s involvement, further solidifying the business foundation of the partnership.
Broader Trade Implications
Interestingly, Bessent’s remarks came from Kuala Lumpur, Malaysia, where parallel U.S.–China trade discussions were taking place. Trade negotiators from both countries, including Jamieson Greer, confirmed progress on a tariff framework and ongoing talks about rare earth minerals, critical materials used in semiconductors and advanced electronics.
Greer noted that rare earths and the extension of trade truces were central topics, hinting that the TikTok deal may also symbolize a broader thaw in U.S.–China economic relations.
The Bigger Picture
The TikTok deal represents more than just the future of a social media app it reflects a strategic effort to balance innovation, data security, and international diplomacy. For the U.S., it ensures protection of national data interests. For China, it signals a willingness to cooperate amid growing global tech tensions.
As Trump and Xi prepare to formalize the deal in Korea, the world will be watching closely. The outcome could shape the next phase of digital governance between two of the world’s biggest economies and redefine how global tech giants operate across borders.
