US and China Finalize Agreement on TikTok Ownership Transfer

The United States and China have finalized an agreement to transfer TikTok's U.S. operations to American ownership, according to U.S. Treasury Secretary Scott Bessent. Bessent announced the development during an appearance on CBS's "Face the Nation," stating that the deal was reached in Madrid and is set to be formalized by Presidents Donald Trump and Xi Jinping during their upcoming meeting in South Korea.

The agreement is part of a broader framework addressing trade relations between the two nations. While specific details of the deal were not disclosed, Bessent emphasized that his role was to secure China's approval for the transaction, which he believes has been successfully accomplished.

This development follows President Trump's executive order signed on September 25, which facilitated the transfer of TikTok's U.S. operations to American investors. Under the proposed structure, ByteDance, TikTok's Chinese parent company, would retain less than a 20% stake, with the majority ownership held by U.S. investors. The deal is valued at approximately $14 billion.

The agreement also stipulates that American investors will have control over TikTok's algorithm, addressing previous national security concerns. The finalization of this deal is seen as a significant step in resolving ongoing trade tensions between the United States and China.