U.S. and China Finalize TikTok Deal Ahead of Leaders’ Meeting
The United States and China are set to advance on a TikTok agreement, as confirmed by Treasury Secretary Scott Bessent.
Progress on the TikTok Deal
In a statement last month, Bessent indicated that the two nations reached a preliminary framework regarding TikTok during discussions held in Madrid. Following this, President Donald Trump signed an executive order aimed at facilitating the business transaction.
Final Deal Announced
During a recent appearance on CBS’ Face the Nation, Bessent declared that a final agreement has been achieved. “We reached one in Madrid, and I believe that as of today, all the details are ironed out,” he stated, noting that the two presidents would formalize the deal this Thursday in Korea. He did not disclose specific details but emphasized, “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.”
Context of the Deal
The urgency surrounding this agreement stems from Trump’s previous extensions of a deadline which demands TikTok’s parent company, ByteDance, either divest from the app or face a ban in the U.S.
Executive Order Highlights
The executive order specifies that TikTok’s U.S. operations—comprising its algorithm, source code, and content moderation—will be overseen by a newly formed board of directors. Oracle, a significant player in this arrangement, is set to be responsible for the app’s security operations, an arrangement facilitated by Trump ally Larry Ellison.
Investors in this joint venture are reported to include Oracle, Fox Corporation (the owner of Fox News), Andreessen Horowitz, and Silver Lake Management. Trump has acknowledged Fox’s involvement in the venture, which appears to be solidifying business ties within this negotiation.
Ongoing Trade Discussions
These remarks come from Kuala Lumpur, Malaysia, where delegations from both countries engaged in broader trade negotiations. According to U.S. trade negotiator Jamieson Greer, discussions included elements related to tariffs and other trade matters, specifically touching on rare earth minerals.
Significance of Rare Earths
While specific details weren’t provided, Greer indicated that the two nations discussed extending a truce regarding trade conditions. “We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics,” he stated. These minerals are pivotal for the production of semiconductors and various technological devices. Ironically, China has announced tightened export controls on these crucial materials recently, complicating the landscape further.
For those interested in how these developments impact the tech landscape, consider checking out our article on the implications of U.S.-China relations on the technology sector.
Conclusion
As the U.S. and China move closer to finalizing the TikTok deal, the outcome could have lasting implications for international relations and the technology industry. Stakeholders across the board are looking to see how this agreement plays out in the coming weeks.
Source: https://techcrunch.com/2025/10/26/trump-and-xi-will-consummate-tiktok-deal-on-thursday-treasury-secretary-says/
