US and China Reach Agreement to Keep TikTok Operational in the United States

President Trump announced an agreement with China that will allow TikTok to continue operating in the United States, pending further discussions with President Xi Jinping.

Deal Structure

The proposed agreement calls for a sale of TikTok’s U.S. operations to a consortium of existing and new investors, which is expected to close within 30 to 45 days. Under the plan, Oracle would retain its role as the primary host for TikTok’s U.S. user data.

National Security Concerns

U.S. lawmakers have expressed fears that ByteDance, TikTok’s Chinese parent company, could provide American user data to the Chinese government. Trump has delayed the app’s ban several times since announcing it in January. The current deadline to divest TikTok’s U.S. arm is September 17. The Supreme Court upheld the ban unless ByteDance agrees to the sale.

China’s Position

During parallel trade talks in Madrid, a U.S.-China delegation reached a “framework” agreement. Chinese officials indicated that any export of technology and licensing of algorithms will be subject to regulatory approval under Chinese law.

The deal hinges on a sale to vetted investors and strict data hosting protocols to address U.S. national security concerns.

This topic was reported by BBC News.

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