US, China reach preliminary deal on TikTok
What's the story
The United States and China have reached a preliminary agreement to keep the popular social media app TikTok running in the US. The deal was announced by officials of the Trump administration on Monday, ending a years-long effort that began during Donald Trump's first term as president. "We have a deal on TikTok," Trump said, adding he would speak with Chinese President Xi Jinping to finalize details.
Deal details
Deal involves US investors acquiring TikTok from ByteDance
Under the framework deal, TikTok's US operations will be bought by a consortium of investors, including Oracle Corp, Andreessen Horowitz, and Silver Lake Management LLC. This move is aimed at reducing ByteDance Ltd's stake in TikTok to below 20%, complying with a US national security law enacted in 2024. If finalized with Trump's and Xi's approval, this transaction could ease tensions between the two countries and allow TikTok to continue its operations in America.
Chinese response
China welcomes agreement, raises concerns over US sanctions
China has welcomed the preliminary agreement, with Wang Jingtao of China's Cyberspace Administration confirming a basic consensus. This includes licensing ByteDance algorithms to the US business and ensuring secure oversight of user data. However, China will review technology exports and intellectual property licensing related to TikTok as per its laws. During recent economic talks in Madrid, Chinese representatives also raised concerns about US sanctions and urged Washington to lift restrictions.
Suspension and extension
TikTok ban temporarily averted in January
TikTok had briefly gone dark in the US on January 18, ahead of the Foreign Adversary Controlled Applications Act coming into force. However, Trump announced an executive action on January 19 to prevent US companies from being penalized for hosting TikTok. This executive order delayed the enforcement of the law by 75 days and was extended again in June. The latest extension was until September 17, with expectations of further delays if a deal wasn't reached in time.