Trump says progress has been made with Xi on a TikTok sale to US investors. Here’s what the deal means for users, investors, and national security.
Table of Contents
Trump Says Progress Made With Xi to Finalize TikTok Deal
Introduction
President Donald Trump announced Friday that his talks with Chinese President Xi Jinping had produced progress toward finalizing a long-awaited TikTok sale to American investors. The move would resolve years of uncertainty surrounding the popular social media platform, which has been at the center of US-China trade tensions, national security debates, and digital policy battles. With more than 170 million American users, TikTok’s future has been a pressing issue for Washington, Beijing, and global investors alike.
Background: A Years-Long Dispute Over TikTok
The push for a TikTok sale began during Trump’s first term and intensified after bipartisan lawmakers passed a bill banning the app unless it divested from its Chinese parent company, ByteDance.
- In January, the Foreign Adversary Controlled Applications Act went into effect, setting deadlines for divestment.
- The Trump administration has repeatedly delayed enforcement, arguing for space to negotiate a sale.
- TikTok briefly went dark in the US before Trump’s executive orders allowed it to remain accessible.
The app’s popularity among younger Americans — a key voter demographic — also shaped the administration’s political calculus.
Framework of the TikTok Sale Agreement
According to officials, the proposed deal would see US-based venture capital firms, private equity groups, and tech companies acquire at least 80% of TikTok’s US operations. Investors reportedly include:
- Oracle
- Andreessen Horowitz
- Silver Lake Partners
Chinese investors would retain a minority stake capped at 20%. The company would be overseen by a majority-US board, including a representative appointed by the Trump administration.
A senior White House official cautioned that “any details of the TikTok framework are pure speculation unless formally announced.”
The Algorithm Question
One unresolved issue is TikTok’s powerful content recommendation algorithm, which drives its addictive “For You” feed.
- US law bars any cooperation between the new American-owned entity and ByteDance regarding algorithmic technology.
- China has signaled it will not approve a full transfer of the algorithm.
- Analysts warn that recreating TikTok’s algorithm from scratch could be difficult for US investors, given rivals’ repeated failures to replicate its success.
Political and Economic Stakes
The deal carries implications far beyond TikTok itself:
- US-China relations: A deal could ease tensions as Trump and Xi prepare to meet at the APEC summit.
- Trade disputes: Talks resumed only after Trump agreed to scale back sweeping tariffs on Chinese goods.
- National security: Lawmakers argue that US oversight of TikTok is critical to prevent foreign surveillance.
- Social media market: Competitors like Instagram Reels and YouTube Shorts are closely watching how the deal impacts their market share.
Oracle Stock Surges on US-China TikTok Deal Framework
What Comes Next
Trump confirmed he and Xi will meet at the upcoming APEC summit in South Korea, with further discussions planned for 2026. Both leaders also agreed to reciprocal visits in the coming year, signaling a thaw in strained ties.
However, questions remain:
- Will the algorithm remain in China?
- How will regulators enforce user privacy safeguards?
- Can TikTok maintain its user base under new ownership?
FAQs
Q1. Why is the US forcing TikTok to sell?
The US government cites national security risks tied to TikTok’s Chinese ownership, particularly concerns over data access by Beijing.
Q2. Who will own TikTok if the deal is finalized?
A consortium of US investors including Oracle, Andreessen Horowitz, and Silver Lake is expected to hold a majority stake.
Q3. Will TikTok’s algorithm be sold as part of the deal?
No. China has resisted allowing the algorithm to be transferred, leaving its fate uncertain under US ownership.
Q4. How many Americans use TikTok?
TikTok has roughly 170 million US users, many of them under 30 — making it one of the most influential apps in the country.
Q5. When will Trump and Xi meet to finalize the deal?
The leaders plan to meet at the APEC summit in South Korea next month, with additional talks scheduled for early 2026.
Conclusion
Trump’s announcement of progress with Xi on a TikTok sale framework marks a critical turning point in the app’s future. With billions of dollars, global trade relations, and national security at stake, the outcome of this deal will shape not only the fate of TikTok but also the trajectory of US-China tech and trade relations for years to come.
👉 Stay tuned for further updates as Trump and Xi move closer to sealing the agreement.