The US and China have a framework for a TikTok deal as Trump faces a looming deadline. Will ByteDance divest, or will TikTok survive? Read more.
Table of Contents
US, China Have Framework for TikTok Deal
Introduction
The future of TikTok in the United States may finally be coming into focus. With the app facing a September 17 deadline to divest from its Chinese parent company ByteDance, US and Chinese officials have agreed on a framework for a potential deal. President Donald Trump confirmed the progress in a Truth Social post, hinting that TikTok could be saved by a “certain company” that young Americans strongly support.
This agreement could mark a turning point in the long-running battle over TikTok’s fate, which has been at the center of national security, trade, and tech policy debates between Washington and Beijing.
Fed Deadline Looms Over TikTok’s Future
TikTok is set to go offline in the US unless ByteDance relinquishes majority ownership. While Trump has repeatedly extended the app’s deadline, the stakes are higher than ever, with bipartisan legislation already passed to restrict Chinese ownership of the platform.
- If no deal is reached, TikTok could vanish from US app stores.
- ByteDance would be allowed to retain only 20% ownership, according to the existing legislation.
- Oracle (ORCL) has emerged as the frontrunner to acquire a controlling stake, sending its stock up more than 3% after the news broke.
Trump’s Changing Stance on TikTok
Trump initially sought to ban TikTok during his first administration, citing national security risks and the possibility of Chinese influence campaigns. But as his own popularity on the app grew, his approach shifted.
The app briefly went offline during the presidential transition in January, when former President Joe Biden left office. However, it quickly returned online, and Trump has since resisted enforcing a full ban.
Geopolitical Implications: More Than Just an App
TikTok has become more than just a social media platform — it’s now a symbol of US-China tensions. Alongside companies like Nvidia (NVDA), TikTok has turned into a bargaining chip in ongoing trade negotiations in Europe.
Treasury Secretary Scott Bessent noted that China wants to preserve certain cultural elements of TikTok even if the app changes ownership, highlighting Beijing’s desire to maintain influence.
Trump and Chinese President Xi Jinping are expected to meet on Friday, where TikTok will likely feature in broader talks about trade, tariffs, and technology control.
Expert Opinions on the TikTok Deal
Industry watchers say that a resolution could reshape not just TikTok’s future, but also how the US regulates foreign-owned digital platforms.
- National Security Concerns: Washington fears Chinese officials could use TikTok to spread propaganda or harvest user data.
- Market Impact: Oracle’s potential acquisition could strengthen its position in the US cloud and tech ecosystem.
- User Uncertainty: With millions of daily users, TikTok’s uncertain status has left creators and businesses scrambling for clarity.
FAQs About the TikTok Deal
Q1: Why does TikTok face a US ban?
TikTok has been accused of posing national security risks, with lawmakers fearing Chinese influence over US user data and content moderation.
Q2: Who is expected to buy TikTok?
Oracle is the leading candidate, though Trump has claimed multiple companies are interested. Current rules would limit ByteDance’s stake to just 20%.
Q3: What is the deadline for TikTok’s divestment?
TikTok faces a September 17 deadline to comply with US law unless Trump grants another extension.
Q4: How does this deal affect US-China relations?
The framework is tied to broader trade negotiations and reflects the ongoing struggle between Washington and Beijing over technology and economic influence.
Q5: Could TikTok still be banned in the US?
Yes. If no deal is finalized or if Congress rejects the arrangement, TikTok could be removed from US app stores and banned from operating domestically.
Conclusion
The US-China framework for a TikTok deal signals progress but leaves uncertainty over the app’s future. With a September deadline approaching, Trump’s meeting with Xi Jinping could prove decisive. Whether Oracle steps in as the buyer or TikTok faces a ban, the outcome will have major implications for social media, technology markets, and international trade relations.