The U.S. and China have reached a breakthrough agreement that could reshape TikTok’s future in America, potentially ending years of uncertainty over whether the wildly popular video app would be banned.
According to The Wall Street Journal, officials from both countries have agreed on a preliminary framework that would transfer TikTok’s U.S. business into a new, U.S.-based company. The structure would give a consortium of American investors—including Oracle, Silver Lake, and Andreessen Horowitz—an 80% ownership stake. Chinese shareholders would retain the remaining 20%.
A Ban Avoided—for Now
TikTok has been under threat of a U.S. ban unless it came under non-Chinese control. The Trump administration first imposed a 90-day deadline earlier this year, requiring TikTok’s parent company, Beijing-based ByteDance, to find a solution. That deadline has been extended several times, with the latest extension pushing the decision to December 16.
Without a deal, TikTok risked being pulled from app stores and shut down for its 170 million U.S. users.
What Changes for Users
As part of the agreement, Oracle would continue to manage data for American users, addressing long-standing national security concerns about Chinese access to personal information.
Current U.S. users would be asked to download a new version of the app, which TikTok has already built and is testing. Importantly, ByteDance engineers would recreate TikTok’s content recommendation algorithms for this new version—effectively cloning the core technology behind the app’s viral videos.
While the app may look and feel the same, these behind-the-scenes adjustments would mark one of the most significant restructurings of a foreign-owned tech platform in the U.S.
Trump’s Changing Tune
President Donald Trump has shifted his stance on TikTok since threatening to ban it. While he once demanded a sale or shutdown, Trump has recently emphasized the app’s importance in helping him connect with younger voters.
“A Republican never wins youth, but I won youth. I will tell you, TikTok helped me,” Trump told Fox News.
Speaking to reporters outside the White House on Tuesday, Trump confirmed the arrangement, describing it as a win for both countries.
“Well, we have a deal on TikTok. I’ve reached a deal with China,” Trump said. “The kids wanted it so badly. I had parents calling me up. They don’t want it for themselves. They want it for their kids. They say, if I don’t get it done, they’re in big trouble with their kids.”
Wider Context: Trade and Diplomacy
The TikTok agreement comes at a sensitive time in U.S.-China relations. Both sides are also negotiating tariffs, money laundering cooperation, and efforts to curb fentanyl trafficking. Earlier this year, tariffs escalated to triple digits before the two countries temporarily lowered them—30% on U.S. imports from China and 10% on Chinese imports from the U.S. That arrangement expires November 10.
What Happens Next
The framework still needs to be finalized, and U.S. and Chinese officials warn that details could change. But if it holds, the deal may finally end the long-running tug-of-war over TikTok’s American presence.
For now, the popular video app remains available, much to the relief of its U.S. user base.
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