The White House has announced a major breakthrough in its negotiations with China concerning TikTok. Under the terms of a newly outlined deal, American companies are set to gain control over the popular video-sharing app’s algorithm. Furthermore, the deal stipulates that seven board seats for TikTok’s US operations will be held by Americans, with six seats allocated to them.
White House Press Secretary Karoline Leavitt stated that the agreement could be finalized in the coming days, though an official comment from Beijing is still pending. This move comes as a response to long-standing national security concerns raised by the US government regarding TikTok’s Chinese parent company, ByteDance.
Previously, TikTok was given an ultimatum: either sell its US operations or face a potential shutdown in the country. However, the implementation of this ban has been repeatedly delayed by President Donald Trump, with the most recent deadline extended to December.
Reports indicate that the tech giant Oracle, chaired by Trump ally Larry Ellison, will lead the management of TikTok’s data and privacy within the United States. Leavitt emphasized that this new arrangement ensures American control over crucial aspects of the app.
The potential sale of TikTok’s US business to a consortium of American investors was reportedly discussed and approved during a call between President Trump and Chinese President Xi Jinping. While Trump expressed his appreciation for Xi’s approval on social media, China’s Ministry of Commerce issued a statement that appeared more reserved, indicating a welcome for commercial negotiations that comply with Chinese laws and regulations.
A key point of contention throughout the negotiations has been the ownership of the influential algorithm that drives content recommendations for TikTok’s 170 million American users. The exact details of how this algorithm will be managed under the new deal remain a central focus.
This development marks a significant shift from Trump’s earlier stance, as his administration had initially sought to ban the app. However, the platform’s popularity, particularly among younger demographics, appears to have influenced a change in approach, with Trump utilizing the app during his 2024 presidential campaign.
The US Supreme Court had previously upheld a law banning the app unless ByteDance divested its US operations. Despite initial concerns from the Justice Department about national security threats posed by TikTok’s access to user data, the evolving situation suggests a path toward a US-centric operational model for the platform.
Related Stories
- Trump and Xi discuss future of TikTok in US
- Can you be sued for defaming virtual K-pop stars? South Korea court says yes
- China is calling a TikTok deal a win. What’s in it for them?