The Trump administration successfully negotiated a deal with China to prevent TikTok's ban in the United States. Under the agreement, American companies will control TikTok's algorithm and hold six of seven board seats, avoiding a complete shutdown of the platform that serves 170 million US users.
Timeline
- September 15, 2025: Treasury Secretary Scott Bessent announced a “framework” deal in Madrid.
- September 16: Trump extended the deadline to December 16 — the fourth extension since January.
- September 19: Trump and Xi Jinping held a phone call to advance negotiations.
- September 20: The White House outlined the final deal structure, confirming the 6-1 board composition.
Key Statements
President Donald Trump: “We have a deal on TikTok... We have a group of significant companies interested in acquiring it.”
Treasury Secretary Scott Bessent: “The commercial terms have essentially been settled since around March, with only a few details remaining to be finalized. This wouldn’t be done without safeguards for U.S. national security.”
White House Press Secretary Karoline Leavitt: “I am 100% confident that the deal between the U.S. and China is finalized... The algorithm will be secured, retrained, and managed in the United States.”
Li Chenggang, China’s Chief Trade Negotiator: Confirmed the framework deal exists, stating “this consensus benefits both parties.”
Expert and Business Reactions
- Frank Pallone Jr. (House Democrat): Warned, “The devil will be in the details... We cannot permit China continued access to vast amounts of Americans’ personal data.”
- Pew Research Center: Found nearly half of TikTok’s adult users frequently get news from the platform, with younger demographics showing increased Republican support in 2024.
- Tech Industry: Oracle, Andreessen Horowitz, and Silver Lake confirmed as leading investors, with Oracle managing U.S. cloud infrastructure.
Immediate Impact
- Ownership Structure: ByteDance retains a 19.9% stake, while U.S. investors control 80%.
- Data Security: All American user data will be stored on U.S.-based Oracle cloud infrastructure.
- Algorithm Control: TikTok’s recommendation system will be secured, retrained, and managed independently from ByteDance.
- Congressional Approval: The deal still requires Republican-controlled Congress approval to comply with the 2024 divestiture law.
Economic and Political Impact
Trump credited TikTok with helping his 2024 re-election campaign by attracting younger voters to Republicans. The agreement marks a breakthrough in U.S.-China trade relations after talks stalled due to Trump’s April tariffs on Chinese goods.
Global Angle
The deal sets a precedent for how foreign tech companies may operate in markets sensitive to national security. China’s willingness to compromise reflects broader trade negotiations, with Trump and Xi expected to meet in person within six weeks.
FAQs on TikTok Ban Avoided in the US
Q1: Why was TikTok facing a ban in the US?
TikTok was under scrutiny due to national security concerns that its parent company, ByteDance, could give the Chinese government access to American user data. A 2024 law required TikTok’s U.S. operations to be divested or face a ban.
Q2: What is the new TikTok deal between the US and China?
The deal allows TikTok to continue operating in the U.S. under a new structure where American companies control 80% of TikTok’s U.S. operations, hold six of seven board seats, and manage its algorithm and data storage.
Q3: Who will control TikTok’s algorithm under the deal?
The TikTok recommendation algorithm will be “secured, retrained, and managed” by U.S. companies, independent of ByteDance.
Q4: What role will ByteDance play in TikTok’s U.S. operations?
ByteDance will keep a 19.9% minority stake and hold just one board seat, below the 20% threshold that would give it greater control.
Q5: Where will TikTok store U.S. user data now?
All American user data will be stored on Oracle’s U.S.-based cloud infrastructure, ensuring compliance with U.S. security standards.
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