President Donald Trump said a framework[1] agreement has been reached with China that would allow TikTok to keep operating in the United States[2]. The deal follows months of uncertainty over the app’s future.
Structure of the Agreement
Trump will speak with Chinese President Xi Jinping later this week to confirm details. Under the arrangement, a new American entity will be created with U.S. investors holding a majority stake. Oracle, Silver Lake, and Andreessen Horowitz are expected to be part of the group, with U.S. shareholders controlling about 80 percent of the business. Chinese owners would hold the rest.
A board made up largely of Americans will oversee the new company, including one member chosen by the U.S. government. Oracle, already responsible for storing TikTok’s U.S. user data, is set to play a larger role once the deal is complete.
Algorithm and Licensing
The key sticking point has been TikTok’s recommendation system. Chinese regulators have resisted transferring that technology outright, but Beijing has indicated that ByteDance will license the algorithm to the U.S. operation. That would allow TikTok’s American business to use the technology without changing ownership of the intellectual property.
Shifting Deadlines
In 2024, Congress passed a law requiring TikTok’s Chinese parent to sell its U.S. operations or face a nationwide ban. The law was upheld by the Supreme Court in January. Since then, the deadline for divestment has been delayed four times. The latest extension, announced Tuesday, sets December 16 as the new cutoff date.
TikTok briefly shut down in January when the first deadline arrived, though the suspension lasted less than a day. Each extension has underscored the difficulties in finding a deal acceptable to both Washington and Beijing.
Political Context
Lawmakers from both parties have supported restrictions on TikTok, citing concerns about data security and foreign influence. Trump initially backed a full ban during his first presidency but later shifted, presenting himself as the one who could keep the app available while tightening oversight.
Chinese officials have described the framework as cooperation that protects national interests while preserving commercial rights. They emphasized that any agreement would still be subject to domestic reviews on technology transfers and licensing rules.
What Comes Next
The framework leaves commercial terms to be settled between ByteDance and U.S. investors. Both sides expect a full agreement to be announced after Trump’s meeting with Xi Jinping this week. The outcome will decide whether TikTok becomes a U.S.-controlled platform or continues in a hybrid structure that combines American oversight with Chinese technology.
Broader Perspective
Some critics have observed that the argument over TikTok’s ownership risks focusing only on power and profit while ignoring its social influence. The platform shapes trends, habits, and values for millions of young people every day.They argue that while nations compete for control of data and markets, little attention is given to the content itself or its effect on families and communities. The concern is that the debate has become political while the cultural impact continues unchecked.From this view, the question is not simply who owns TikTok, but what kind of influence such platforms should be allowed to carry. For many observers, the real issue lies in how societies choose to guard collective wellbeing in a digital age where entertainment and distraction often outweigh responsibility.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
Read next:
• What Counts as a Good Instagram Engagement Rate in 2025[3]
• Companies Automate With AI While Consumers Use It to Learn and Explore[4]
References
- ^ a framework (x.com)
- ^ keep operating in the United States (www.whitehouse.gov)
- ^ What Counts as a Good Instagram Engagement Rate in 2025 (www.digitalinformationworld.com)
- ^ Companies Automate With AI While Consumers Use It to Learn and Explore (www.digitalinformationworld.com)