Washington and Beijing have agreed on a «framework» that could transfer TikTok’s U.S. operations to American ownership, U.S. Treasury Secretary Scott Bessent said. If finalized, the deal could bring U.S. oversight and avert a nationwide ban, with Presidents Donald Trump and Xi Jinping expected to sign off later this week, according to the BBC.
The move comes ahead of a looming deadline requiring TikTok’s parent company ByteDance to divest its U.S. operations or face a nationwide ban due to security concerns. If the deal is finalized, TikTok could avoid the ban by transferring ownership and control to U.S. interests. The deadline has already been extended three times, with the latest set for September 17.
Oracle is one of the companies that could help set up a US-based ownership structure if the deal is approved. Both countries claim that talks are progressing, but China asserts that it will safeguard its national interests.
TikTok’s future has been a flashpoint in broader US-China trade negotiations, with Washington insisting on safeguards for American user data and Beijing resisting the complete transfer of the app’s recommendation algorithm.
Analysts suggest that without a clear plan for data storage and control of the app’s algorithm, security risks may persist even if the deal is finalized. Still, the framework deal could improve relations by addressing some U.S. concerns and reducing tensions between the US and China.
