President Donald Trump revealed Tuesday that the United States and China have reached a framework agreement that will keep TikTok operating domestically. This news will likely impact millions of American users and tech investors as final negotiations unfold in the coming weeks.
The announcement extends TikTok’s divestiture deadline until December 16, as major US and Chinese parties continue hammering out structural and security issues.
Trump indicated strong interest from American firms in leading the new TikTok entity, signaling bipartisan support for a solution that keeps the app alive while addressing national security concerns.
What is the framework deal Trump announced?
The framework deal creates a roadmap for TikTok to avoid a US shutdown and shift control to American corporate leadership.
According to statements from Trump and the Treasury, the arrangement involves divesting significant ownership from China’s ByteDance.
The agreement gives negotiators additional time to work out specifics, extending the deadline by several months.
Trump’s executive order this week marks the fourth extension of the federal divestiture law, reflecting the complexity of balancing commercial interests, regulatory requirements, and data privacy risks.
Before leaving for the United Kingdom, he emphasized that the deal would prioritize US security.
Did you know?
TikTok's user base in America hit 170 million in 2025 making it one of the fastest-growing social media platforms among US adults.
Who will control TikTok after the agreement?
Under the proposed structure, a group of American investors, including Oracle, Silver Lake, and Andreessen Horowitz, is expected to control roughly 80% of TikTok’s US operations.
ByteDance would retain 19.9%, just below the legal threshold established by Congress.
This setup would see US government representation on the board and reduce ByteDance’s direct influence over strategic decisions and data policies.
Other participants, such as Susquehanna International Group, General Atlantic, and KKR, would join the controlling consortium.
This multi-stakeholder format is designed to satisfy national interests while leveraging technological and operational expertise from both sides of the Pacific.
How does the deal affect US TikTok users?
Most American TikTok users will benefit from continued access to the platform, with no immediate disruptions expected as the deadline is delayed.
Transition to US-led operations may result in subtle changes in app governance or content moderation, though core features will likely remain unchanged during final negotiations.
Treasury Secretary Scott Bessent highlighted that TikTok users will eventually shift to a new app version leveraging licensed algorithms from ByteDance.
Transition plans are being tested to ensure that the experience and data protection standards meet US regulatory requirements by the time full divestiture occurs.
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What remains undecided about the algorithm?
The proprietary recommendation algorithm developed by ByteDance remains a sticking point for both governments.
China’s Cyberspace Administration has signaled that ByteDance could license its technology instead of allowing a direct transfer, in line with Beijing’s export controls.
American legislators warn that the deal must ensure full compliance with US law, which calls for complete Chinese divestiture from both data and critical intellectual property.
Reports indicate that US users may move to an app powered by licensed ByteDance algorithms, although the House Select Committee on the Chinese Communist Party maintains that genuine security depends on American technical oversight and regulatory clarity regarding algorithm controls.
What’s next for TikTok and US-China tech relations?
Trump plans to discuss the agreement’s final points with President Xi Jinping on Friday. Until then, negotiators face pressure to resolve technical details and major legal concerns before TikTok’s new ownership structure is formalized.
Both sides are using the current deadline extension to settle last-minute disputes on technology transfer and data privacy. This developing story reflects broader challenges in US-China cross-border tech management, regulation, and business investment.
As the second most popular social platform in America, TikTok’s future will set a precedent for upcoming tech negotiations amid growing competition and evolving cybersecurity standards.
The ongoing negotiations around TikTok’s ownership could serve as a blueprint for addressing security and innovation in digital media, particularly for platforms straddling US-China interests.
The deal marks an important, if tentative, step toward collaboration and risk mitigation in a complex global tech ecosystem.
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