After the long battle over Data Privacy and National Security, the United States and China have finally reached a TikTok Agreement that will bring the App back to America.
It feels like we’ve been having this conversation forever, doesn’t it? The back-and-forth over TikTok’s future in the United States has been going on for so long that it’s easy to lose track of where things stand. But this week marks a genuine turning point in this saga. According to CBS News, Treasury Secretary Scott Bessent announced today that the United States and China have finalized a deal that will keep TikTok operating in the country, and both President Trump and Chinese President Xi Jinping are set to officially sign off on the arrangement this Thursday during their meeting in South Korea at the Asia-Pacific Economic Cooperation summit. After months of negotiations, political wrestling matches, and more deadline extensions than anyone can count, we’re finally looking at a concrete agreement that will reshape TikTok’s entire operational structure in America.
So what does this deal actually mean? The framework that’s been agreed upon essentially hands control of TikTok’s United States operations to a new joint venture that will be predominantly American-owned and operated. ByteDance, TikTok’s Chinese parent company, will retain a stake of less than twenty percent in the new entity, which is a major concession from their current position. The remaining eighty percent will be controlled by American and international investors, with some big names from the tech world involved. We’re talking about Oracle, the tech giant whose founder Larry Ellison has close ties to the Trump administration. We’re also looking at investment firms like Silver Lake Partners and venture capital outfit Andreessen Horowitz. This consortium of American companies will essentially own and run TikTok’s American business going forward.
One of the biggest sticking points throughout all of these negotiations has been TikTok’s recommendation algorithm — the secret sauce that determines what content shows up in your feed and keeps you scrolling. That algorithm has been a national security concern for years, with lawmakers worried that the Chinese government could leverage it to spy on American users or manipulate public opinion. Under this new deal, that algorithm is getting completely retrained and will operate independently from Chinese oversight. Oracle is serving as the trusted security provider for the entire operation, meaning they’ll be responsible for ensuring that American user data stays secure and is stored on systems within the United States and will be fully inspecting the algorithm to be sure American user data is safely retained, and continuously monitored as it operates, all handled by the security provider and the new American-controlled board of directors.
The valuation of this entire transaction sits around fourteen billion dollars, which is a substantial number but also reflects just how valuable TikTok’s American operations have become. To put this in perspective, the app has become deeply embedded in how millions of Americans consume news and entertainment. According to Pew Research, about one in five American adults gets their news from TikTok, and among adults under thirty, the app is a more significant news source than YouTube, Facebook, or Instagram. This isn’t just a tech story anymore — it’s about where people are actually getting information.
The path to this deal has been absolutely wild. According to WhiteHouse.gov, Congress passed a bipartisan law back in 2024 that essentially told ByteDance to divest from TikTok or the app would face a ban. That law set off a chain reaction of executive orders, extensions, and negotiations that have dragged on ever since. President Trump, when he returned to office earlier this year, expressed his desire to actually make a deal rather than impose a ban outright. He signed an executive order in September that basically said the framework agreement being negotiated satisfied the requirements of the law and bought more time for the final details to be worked out. That executive order extended the enforcement deadline to December sixteenth. Now we’re at the point where all those details have actually been ironed out, and the two leaders are ready to put pen to paper.
According to Tech Crunch, the timing here that this deal is interesting because it is being finalized as part of broader trade discussions between the United States and China. Treasury Secretary Bessent was in Malaysia over the weekend meeting with Chinese trade officials, and he confirmed that all the details on TikTok have been resolved. Beyond TikTok, there are also discussions happening about trade tariffs, rare earth minerals, and soybeans — so the TikTok deal is really just one piece of a much larger negotiation between the two economic superpowers.
Here’s the thing, folks: It’s worth noting that according to CBS News, not everyone is completely satisfied with the arrangement. Some Republican lawmakers, including House China Committee Chairman John Moolenaar, have expressed ongoing concerns about allowing ByteDance to maintain any ownership stake in the new entity, no matter how small. Their worry is that even a minority stake gives the Chinese government leverage and influence over the platform. However, the majority position seems to be that this deal strikes the right balance between protecting national security concerns and keeping the app operational for the millions of Americans who use it every day.
With that… After uncertainty over the last few years and multiple near-death experiences for the app, TikTok is going to stay around. Americans won’t wake up to find the app simply vanishing from their phones. Instead, we’re looking at a completely restructured company where American investors hold the majority stake, American companies control the security and algorithm operations, and American user data gets stored on American servers under American oversight.
If you don’t use the platform, you should still care about your privacy.