US and China Finalise Landmark Deal on TikTok Ownership Transfer

The United States and China have agreed to final terms on the sale of TikTok’s American operations to a new group of largely US-based investors, marking a significant development in the ongoing tensions over digital sovereignty. US Treasury Secretary Scott Bessent announced the news during an interview on CBS’s Face the Nation, highlighting that negotiations concluded successfully in Madrid. The arrangement awaits official confirmation at a planned meeting between President Donald Trump and Chinese leader Xi Jinping in Korea.

This resolution follows President Trump’s executive order on 25 September, which created the pathway for a new ownership structure favouring American investors. The order is understood to transfer majority control, with US and international investors holding approximately 65 percent of TikTok’s US entity, while Chinese parent ByteDance and associated investors will be limited to less than a 20 percent stake. This shift grants oversight of TikTok’s algorithm and operations to a new board of directors comprised predominantly of American interests.

The agreement reportedly forms part of a broader framework for a US-China trade negotiation package, which is expected to be a central topic in the upcoming summit. Other anticipated subjects include agricultural trade, the US trade deficit, and efforts to address the ongoing fentanyl crisis, the latter being a key rationale cited for recent tariff increases on Chinese imports.

While specific commercial details remain undisclosed, both sides appear to have reached a compromise to secure the app’s continued availability in the US, valuing the deal at an estimated 14 billion dollars. The new board of directors will consist of seven seats, with six allocated to the American investor group. High-profile figures including Rupert Murdoch and Larry Ellison are reported to be among the new investors, with Barron Trump, the President’s youngest son, also floated as a possible board member by former White House social media producer Jack Advent.

TikTok faced a series of regulatory hurdles over the past five years, including a ban passed by Congress in 2024 and signed into law by then President Joe Biden, with implementation delayed until this year. Trump’s administration extended the deadline four times while negotiating this outcome, indicating the high political stakes and complex interplay of global interests in the tech sector.

The finalisation of this deal signals a new chapter for TikTok in the US, placing the platform under tight American scrutiny while serving as a lynchpin in the broader recalibration of US-China economic relations.