TikTok Deal Nears as U.S. and China Seek Agreement

The United States and China are moving closer to a deal on TikTok’s U.S. operations, with China’s ByteDance set to choose one of seven board members while Americans hold the other six, according to a senior White House official. The agreement comes after Congress passed a 2024 law requiring TikTok to divest its U.S. assets or face a ban by January 2025.

President Donald Trump, who delayed enforcement of the law until mid-December, is pushing to secure American ownership and oversight of the platform, which has 170 million U.S. users. Trump plans to extend the pause another 120 days, making April the new deadline for a finalized agreement. He recently said progress was made during a call with Chinese President Xi Jinping, though Beijing has offered little confirmation.

Under the proposed terms, TikTok’s U.S. assets would be majority-owned by American investors, with ByteDance holding less than 20%. Oracle will host all American user data on U.S.-based cloud infrastructure, while TikTok’s recommendation algorithm will be retrained and operated independently in the U.S., ensuring no control by ByteDance. Officials emphasized this step is crucial to prevent potential manipulation of social media content.

Despite the progress, lawmakers remain cautious. Representative Frank Pallone warned against granting China access to Americans’ data or allowing TikTok to become a political tool. The agreement still faces questions about whether it meets Congress’s requirement for a full divestiture.

TikTok’s algorithm, likely licensed from ByteDance, will undergo U.S. review and rebuild. The White House confirmed U.S. users will continue engaging with global content, but all data and operational control will remain within the U.S.

ByteDance’s current investors include Susquehanna International Group, General Atlantic, and KKR. Trump, who credits TikTok with boosting his reelection campaign, has 15 million followers on the app.