TikTok faces a critical juncture in the United States after Congress passed a law in 2024 mandating ByteDance sell its American business or risk a nationwide ban. In a fourth extension, Trump signed an executive order delaying the shutdown deadline from September 17 to December 16, granting negotiators more time to iron out a deal that safeguards U.S. national security while preserving TikTok’s popular features.
Just one day before the extension, U.S. Treasury Secretary Scott Bessent revealed that American and Chinese officials reached a “framework” agreement during trade talks in Madrid. According to China’s senior trade negotiator Li Chenggang, the basic consensus covers U.S. operation ownership transfer, user data security under American control, and licensing TikTok’s recommendation algorithm to an American consortium, ensuring continued technical collaboration.
Under the proposed structure, Oracle, Silver Lake, and Andreessen Horowitz are front-runners to acquire an 80% stake in the new U.S. entity. ByteDance would retain fewer than 20% of shares and license critical intellectual property, allowing TikTok to maintain its signature algorithmic engine while preventing Beijing from accessing sensitive user information.
This U.S. move echoes India’s 2020 TikTok ban, when New Delhi deemed the Chinese app a threat to sovereignty and security after border clashes. On June 29, 2020, India outlawed TikTok and 58 other Chinese applications, resulting in over 660 million installs being cut off and an estimated daily revenue loss of $500,000 (Rs.3.5 crore) for ByteDance.
As Trump prepares to discuss final details with Xi Jinping on Friday, the agreement’s fate and TikTok’s future in America hinges on balancing economic interests, user privacy, and geopolitical tensions. If finalized, the deal could serve as a model for resolving app-related security disputes and easing U.S. China trade frictions.
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