U.S. and China Reach Framework Agreement on TikTok's Future
The United States and China have established a framework agreement concerning TikTok's operations, addressing national security concerns and aiming to prevent a potential ban of the app in the U.S.
Treasury Secretary Scott Bessent announced on Monday that the United States and China have reached a "framework for a TikTok deal," just days before a deadline that could have led to the app's ban in the U.S. Bessent provided limited details about the agreement, particularly regarding control over TikTok's algorithm, stating, "We're not going to talk about the commercial terms of the deal. It's between two private parties, but the commercial terms have been agreed upon."
He emphasized that the deal aims to be fair to China while fully addressing U.S. national security concerns. Bessent added that the U.S. seeks to "ensure that the Chinese have a fair investment environment in the United States, but always that U.S. national security comes first."
The announcement coincided with President Donald Trump's statement on Truth Social, indicating that an agreement had been reached over a "company that young people in our Country very much wanted to save." Trump also mentioned plans to speak with Chinese President Xi Jinping on Friday.
TikTok has been under scrutiny due to a U.S. law that threatened to ban the app unless it was sold to a non-Chinese buyer. The law, passed in 2024 and upheld by the Supreme Court, required ByteDance, TikTok's Chinese owner, to sell the platform to a U.S.-based company or face penalties. The law garnered bipartisan support in Congress over concerns about privacy and national security for the app's more than 170 million U.S. users.
The app was briefly shut down in the U.S. just days before Trump's inauguration, but the president promised not to impose penalties on TikTok after taking office, allowing ByteDance time to find a U.S.-based buyer. Trump has since extended the deadline multiple times, with the most recent extension set to expire on Wednesday.
Potential U.S.-based bidders for TikTok have included venture capital group Andreessen Horowitz, Amazon, asset management firm Blackstone, and tech giant Oracle, whose co-founder, Larry Ellison, is a close Trump ally. One of TikTok's current U.S. investors, Jeffrey Yass, spent millions in 2024 lobbying to protect the app from being shut down. Yass's 7% share of TikTok was valued at up to $21 billion last year.
In July, NBC News reported that Yass had donated $16 million to Trump's super PAC, sending $1 million days before Trump's inauguration and another $15 million in early March.
Trump, who attempted to ban TikTok during his first term, has spoken favorably about the platform in his second term, crediting it with helping him win over key groups of young voters in the 2024 presidential election. During a recent interview on Fox News' "Fox and Friends," the president stated, "A Republican never wins youth, but I won youth. I will tell you, TikTok helped me."
Commerce Secretary Howard Lutnick also addressed the potential ban, highlighting the president's positive feelings toward the platform while considering security concerns. Lutnick told CNBC, "The president likes TikTok. You know, he did well communicating with young people through TikTok. So he's partial to it." However, he emphasized the need for American ownership and control over the algorithm, stating, "If the president can get that, he's going to keep TikTok. If you can't, it's going to go dark."