TikTok ownership deal sparks breakthrough between US and China

A major breakthrough has emerged in the prolonged dispute between Washington and Beijing as both sides reached a framework agreement to transfer the ownership of TikTok into US hands. The accord, struck following high-stakes negotiations, marks a new phase for one of the world’s most popular social media platforms, which has spent years at the centre of global concerns over privacy and security.

Announced in Madrid by US treasury secretary Scott Bessent, the deal’s commercial terms remain confidential as they are a matter for private entities. Nonetheless, Bessent confirmed that negotiations had concluded with mutual agreement on the core points. Chinese trade negotiator Li Chenggang corroborated the outcome, expressing a willingness for co-operation in resolving friction and promoting open market engagement.

This framework follows legislative action by US President Joe Biden in April 2024, which mandated the sale of TikTok’s US operations to an American-approved buyer within nine months, threatening a full ban in the absence of such a transaction. Successive deadline extensions, notably under Donald Trump’s administration, prolonged uncertainty for TikTok’s estimated 135 million American users and global stakeholders.

At the heart of the stalemate were fears in Washington regarding ByteDance, TikTok’s Chinese parent company, and its ability to access sensitive American user data or manipulate the platform’s content to influence public opinion. Former FBI director Christopher Wray led warnings over Chinese security laws potentially compelling ByteDance to hand over private information, while additional scrutiny was levelled at TikTok’s use of workplace communication tools to harvest user data.

The new ownership arrangement is intended to allay concerns related to national security and protect the personal data of millions of US users. Past attempts at resolving the conflict—including a failed bid by Microsoft in 2020 and a joint proposal from Oracle and Walmart—ultimately faltered amid heightened regulatory review.

Apple and Google had delisted TikTok during a brief compliance shutdown, restoring access only on government assurance that legal penalties would not ensue during the latest phase of political negotiation. The final details now await ratification following discussions between Donald Trump and Chinese president Xi Jinping, signalling that the extended regulatory uncertainty may soon end.