A breakthrough after years of uncertainty
After years of back-and-forth, the Trump administration announced on Monday that it has reached a deal with China to keep TikTok running in the United States. The announcement follows months of rumors that the well-known app, which has about 170 million American users, might face a ban.
Treasury Secretary Scott Bessent said a framework agreement has been reached, and President Trump will speak with Chinese leader Xi Jinping on Friday to finalize the details. Officials said this agreement is a major step toward a full Trump-Xi meeting, something both countries have been working toward.
Trump’s role in the deal
According to U.S. officials, President Trump played a direct role in pushing the agreement forward. “Without his leadership and the leverage he provides, we would not have been able to include the deal today,” Bessent said during trade talks in Madrid.
The Trump administration has not confirmed the identity of the U.S.-backed buyer of TikTok’s American assets. However, industry experts believe Oracle’s Larry Ellison, a close Trump ally, is leading the group.
Why TikTok was at risk
TikTok’s fate in the U.S. has been uncertain for years. Lawmakers from both parties raised concerns about national security and the app’s ties to its Chinese parent company, ByteDance.
A bipartisan bill, signed into law by former President Biden, had banned TikTok unless ByteDance divested its U.S. assets. That law nearly forced the app offline earlier this year when it briefly went dark for one day.
President Trump, during his second term, extended deadlines multiple times to allow time for a potential deal. Without this new agreement, TikTok could have been banned from U.S. app stores and servers permanently.
What the deal includes
Chinese officials said the framework agreement covers several key points:
- Cooperation on TikTok’s U.S. operations.
- Ensuring U.S. national security through oversight of user data.
- Possible licensing of TikTok’s algorithms and intellectual property rights.
- Reducing investment barriers and boosting trade cooperation.
Li Chenggang, China’s top trade negotiator, described the discussions as “candid and in-depth”, while confirming that both sides reached a “basic framework consensus”.
Who might own TikTok’s U.S. business?
Several investors have shown interest in buying TikTok’s U.S. operations. Former Dodgers owner Frank McCourt and “Shark Tank” investor Kevin O’Leary made offers, but experts doubt they could afford TikTok’s hefty price tag, which could be tens of billions of dollars.
Larry Ellison’s Oracle appears to be the strongest candidate. Oracle already has ties to TikTok, as it has been hosting the company’s U.S. data since 2020. Ellison also has the financial power and political backing to pull off such a deal.
Why Trump’s stance changed
During his first term, Trump strongly pushed for banning TikTok. But his opinion shifted after the app’s popularity among young voters seemed to help him during the 2024 election. TikTok’s massive user base, many of them under 30, leaned more toward supporting Trump compared to past elections.
Saving TikTok could also give Trump political credit with younger Americans, many of whom rely on the app for entertainment, trends, and even political news.
What happens next
Trump and Xi are expected to hold a direct phone call on Friday to finalise the framework. A possible in-person meeting between the two leaders could happen during Trump’s trip to Asia in late October or early November.
U.S. officials said that without a TikTok agreement, such a meeting would not have been possible. With the deal in place, hopes are higher for broader trade talks between the two nations.
Why this matters for users
For everyday TikTok users, this means the app will remain available in the United States. The uncertainty of a ban had worried influencers, small businesses, and millions of creators who rely on TikTok to share content, connect with audiences, and even earn money.
By reaching this deal, the Trump administration not only saved a platform popular with millions but also reduced tensions with China on a highly sensitive issue.
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