A deal has been reached between the United States and China to shift TikTok’s ownership under US control, with a final confirmation expected during a scheduled call between President Donald Trump and Chinese President Xi Jinping on Friday.
TLDR:
- The US and China have reached a framework agreement to move TikTok into US-controlled ownership, easing tensions over national security concerns.
- President Trump will finalize the deal with President Xi during a call this Friday, seen as a precursor to a broader summit.
- The deal preserves aspects of TikTok important to China while addressing US security laws passed in 2024.
- Oracle is widely expected to lead the US consortium, though official buyer details remain undisclosed.
What Happened?
After months of high-stakes negotiations, US and Chinese officials announced they have reached a framework agreement on TikTok’s future. The deal aims to transfer operational control of the app to US interests, a long-standing demand of the US government citing national security risks from ByteDance, TikTok’s Chinese parent company.
NEW: President Trump teases potential deal for TikTok in the U.S. pic.twitter.com/zyt8CQiDiA
— Fox News (@FoxNews) September 15, 2025
Final Deal in Sight After Years of Back-and-Forth
The announcement follows intensive trade talks held in Madrid, where US Treasury Secretary Scott Bessent led discussions with Chinese officials. Bessent confirmed the agreement and emphasized that President Trump provided direct guidance that shaped the outcome.
“We had a call with him last night, we had specific guidance from him,” Bessent told reporters in Madrid. “Without his leadership and the leverage he provides, we would not have been able to include the deal today.”
The agreement came just ahead of a September 17 deadline, after which TikTok could have faced a ban under the Protecting Americans from Foreign Adversary Controlled Applications Act. Trump has already granted several extensions this year, and while it remains unclear whether this latest move counts as a formal divestiture, officials hinted the deadline might be extended by 90 days to finalize details.
What’s in the Deal?
While specific commercial terms are still under wraps, the deal reportedly preserves certain “Chinese characteristics” of the app, which Chinese officials see as a form of cultural soft power. Bessent made it clear, however, that the US focus remains squarely on national security.
“They’re interested in Chinese characteristics of the app, which they think are soft power,” Bessent said. “We don’t care about Chinese characteristics. We care about national security.”
Negotiations also involved discussion around the app’s underlying technology. There’s speculation that ByteDance may license the app’s algorithm rather than fully transferring it, an option that still requires scrutiny from Congress.
Oracle-Led Bid Still Expected
Although unnamed in official statements, the buyer is widely believed to be a consortium led by Oracle executive chairman Larry Ellison, along with backing from Susquehanna International Group and Andreessen Horowitz. Ellison, a vocal Trump supporter, briefly became the world’s richest person last week and is seen as a favorable figure in the White House’s strategy.
Political Stakes and Public Sentiment
Trump himself credited TikTok as a key campaign tool, noting in a Truth Social post that a deal was reached for a company “that young people in our Country very much wanted to save.” The app reportedly has 170 million US users, including 15 million followers on Trump’s personal account.
Shutting it down could have backfired politically, especially after the White House recently launched its own official TikTok account. Balancing security concerns without alienating users seems to be a critical part of the administration’s approach.
Next Steps: A Trump-Xi Summit?
Both sides framed the call between Trump and Xi as potentially paving the way for a broader summit, which Chinese officials have been seeking. According to US sources, no fall meeting would have been possible without this TikTok agreement.
Talks also briefly touched on unrelated geopolitical tensions, including the US push for allies to tariff Chinese imports over its support for Russian oil.
What TechKV Thinks?
In my experience covering tech and policy, this deal is a classic example of negotiation through brinkmanship. For months, the TikTok situation felt like political theater, but this breakthrough shows how real the stakes were. I found the blend of national security, corporate influence, and global diplomacy in this case absolutely fascinating. Let’s be clear, this isn’t just about a social media app. It’s about who controls the data, the influence, and the narrative in a digital age. The fact that Trump and Xi are making the final call themselves tells you everything about how high-level this really is.
