US-China Agreement on TikTok: After a lengthy period of uncertainty, the Trump administration has stated that Washington and Beijing have reached a framework agreement to maintain TikTok’s presence in the US. The agreement pertains to longstanding national security issues associated with TikTok’s parent company, ByteDance from China, and therefore represents an important milestone in one of the most intense political tech battles between the two countries.
Trump Administration Pushes TikTok Deal Forward
US Treasury Secretary, Scott Bessent, made the announcement on the framework following trade discussions in Madrid. Bessent said, “We now have a framework for a TikTok deal,” but added that the commercial terms overlooked confidentiality. Bessent credited Donald Trump’s leadership, stating that without Trump’s direct involvement, the deal would not have gone as far as it has.
Trump is expected to speak with Chinese President Xi Jinping later this week to finalize the deal prior to an upcoming US-China summit.
What Prompted the Threat for TikTok in the United States?
For years, Washington has voice concerns about possible scenarios in which Beijing could force ByteDance to turn over American user data, which was considered a national security threat.
• In April 2024, then-President Joe Biden signed legislation giving ByteDance the option to either divest itself of TikTok’s US business operations or be banned nationwide.
• When Trump returned to the presidency, he was able to postpone the ban multiple times, arguing that negotiation would ensure national security and would be better for TikTok’s 170 million users in the US.
Critics have claimed that Trump ignored Congress’s intent to proactively end the risk by banning TikTok; however, the Trump administration argued that negotiations provided a better long-term solution than any ban.
China’s Response to The TikTok Deal
Chinese trade negotiator Li Chenggang has confirmed that a possible framework has been reached between Washington and Beijing on TikTok. He did caution the US about a double standard.
“The US cannot ask China to satisfy its concerns while continuing to suppress Chinese companies,” Li said.
The US-China negotiation comes at a time of heightened trade tensions, as the Chinese government also announced an antitrust investigation into Nvidia.
Who Will Buy TikTok’s US Branch?
The largest question, of course, remains who will purchase TikTok’s US branch.
– Oracle- co-founder Larry Ellison has been named a front-runner due to the company’s role as a cloud provider for TikTok US operations.
– There is also a competing bid coming from a consortium led by Frank McCourt and Kevin O’Leary, however, the buyers’ finances are in doubt.
– Microsoft, which attempted to buy TikTok in 2020, has not re-entered the bidding.
Some bidders have said they would consider buying the app with no recommendation algorithm, but most analysts think that the recommendation algorithm (which the company claims is drive so much of their success) is “key,” or perhaps the only reason, for someone to buy the app.
What Happens Next?
As the US-China TikTok negotiation reaches its final stretch, the future of one of the most downloaded social media apps will be determined. For Washington, the difficult task will be weighing innovation, user choice, and national security. For Beijing, the negotiations expose the extent to which Chinese tech leaders like ByteDance will play an information-centric role in global geopolitics.
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