A breakthrough in the long-running TikTok saga appears imminent as reports indicate that the United States and China have finalized the framework for the social media app’s U.S. operations. Presidents Donald Trump and Xi Jinping are expected to officially approve the agreement during their meeting at the APEC Summit in South Korea on October 30, 2025.
The potential deal, years in the making, could prevent a complete U.S. ban on TikTok and reshape the app’s global ownership structure. It also signals a broader shift toward easing U.S.–China tensions after years of economic and technological rivalry.
A Deal Years in the Making
According to Treasury Secretary Scott Bessent, all major terms have been agreed upon following negotiations in Madrid and Kuala Lumpur earlier this year. The U.S. side reportedly secured Chinese approval after months of technical and political discussions.
The arrangement, described as a “qualified divestiture” will transform TikTok’s U.S. operations into a new joint venture with majority American ownership. ByteDance, the Chinese parent company, is expected to retain less than 20 percent of the new entity. Oracle Corp will oversee critical operations such as data security, source-code management, and content moderation.
Other investors include Fox Corp, Andreessen Horowitz, and Silver Lake Management, with a U.S.-based board taking charge of governance and transparency.
Part of a Larger U.S.–China Reset
The TikTok agreement appears linked to broader economic diplomacy between Washington and Beijing. The deal’s timing coincides with renewed discussions on tariffs, rare-earth mineral exports, and agricultural trade.
Reports suggest China will resume major U.S. soybean purchases and postpone new restrictions on rare-earth exports—materials crucial for EV batteries and semiconductors. Meanwhile, Trump’s threat of 100% tariffs on Chinese imports is now “off the table,” according to Bessent.
If completed, the arrangement could mark one of the most significant cooperative steps between the two powers since 2020, signaling cautious optimism for global trade stability.
Critics Warn of Lingering Concerns
Despite optimism, skepticism remains high among U.S. lawmakers and analysts. Representative John Moolenaar expressed doubts about residual Chinese influence, arguing that “as long as ByteDance retains any stake, concerns about data access will persist.”
Others question potential favoritism in the deal, as investors like Oracle and Fox Corp are known Trump allies. Critics describe it as a “politically convenient restructuring” rather than a genuine security solution.
Policy experts also highlight the ongoing tension between data security and free expression, noting that increased U.S. control could introduce new oversight risks for creators and users alike.
What Comes Next
If approved during the October 30 summit, the deal would secure TikTok’s ability to continue serving its 170 million U.S. users under a U.S.-controlled structure. It could restore investor confidence and ease pressure on ByteDance to divest.
Still, much depends on formal Chinese confirmation and transparent enforcement. Without those, the agreement could unravel amid political scrutiny or future trade disputes.
For now, the U.S.–China TikTok deal represents a rare diplomatic breakthrough, one that blends technology, politics, and economics in a single high-stakes negotiation that may redefine the digital landscape for years to come.
