The United States and China are set to finalise a pivotal agreement on TikTok’s ownership, with Presidents Donald Trump and Xi Jinping scheduled to officially close the deal during their meeting in Busan, South Korea, this Thursday. This will be their first in-person meeting since 2019 and a key moment in U.S.-China relations.
Treasury Secretary Scott Bessent confirmed that an accord has been reached following earlier talks in Madrid. He stated, “[We] reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.” His role was to secure Chinese approval, which he confirmed had been accomplished.
The deal requires ByteDance, TikTok’s Chinese parent company, to divest a majority of its U.S. operations to comply with U.S. national security laws. American investors would own around 80%, leaving ByteDance with less than 20%. Oracle, Fox Corp, Andreessen Horowitz, and Silver Lake Management are among the main investors. Oracle will manage security aspects, with TikTok’s U.S. operations governed by a new board dominated by American stakeholders.
President Trump’s executive order enabled this arrangement, delaying the threat of a U.S. ban while creating a new joint venture where TikTok’s recommendation algorithm and user data oversight remain under American control, licensed from ByteDance.
Simultaneously, negotiations in Kuala Lumpur yielded progress on tariffs and rare earth mineral exports, crucial for tech manufacturing. U.S. trade negotiator Jamieson Greer remarked, “We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics.”
This deal indicates a shift away from outright bans towards a negotiated compromise, addressing security concerns while allowing TikTok to operate in the U.S. under stronger American oversight. The agreement’s formalisation during the Asia-Pacific Economic Cooperation summit may also help ease U.S.-China tensions around trade and technology.