A deal has likely been reached between the Trump administration and China to ensure TikTok remains operational in the United States, administration officials announced Monday, bringing to a close a years-long effort that began during President Donald Trump’s first term.
US Treasury Secretary Scott Bessent confirmed that a framework agreement has been reached, with Trump scheduled to meet Chinese leader Xi Jinping on Friday to finalize the deal.
“President Trump played a role in this, we had a call with him last night, we had specific guidance from him we shared it with our Chinese counterparts,” Bessent said in Madrid on Monday. “Without his leadership and the leverage he provides, we would not have been able to include the deal today.”
The Trump administration did not disclose the U.S.-backed buyer, but the group is widely expected to be led by Oracle executive chairman Larry Ellison, who briefly became the world’s richest person last week. Trump had previously expressed support for Ellison, stating in January that he would champion Ellison, a Trump supporter, in acquiring the U.S. assets of TikTok’s parent company, ByteDance.
Diplomacy and Trade Talks
Chinese and U.S. diplomats have been meeting in Spain this week to discuss trade and other matters, with TikTok among the topics likely on the agenda. Bessent, leading the latest round of trade talks on behalf of the United States, emphasized the focus on securing a deal that addressed national security while remaining fair to China.
“We were very focused on TikTok and making sure that it was a deal that is fair for the Chinese and completely respects US national security concerns, and that’s the deal we reached,” Bessent said. “And of course, we want to ensure that the Chinese have a fair, invested environment in the United States, but always that US national security comes first.”
Background: TikTok Controversy in the U.S.
Trump had repeatedly extended deadlines for reaching a deal with China to sell at least part of ByteDance’s U.S. TikTok business to an American-backed owner. A bipartisan bill, passed by Congress and signed by former President Joe Biden, banned TikTok in the United States unless its China-based owner divested its U.S. assets.
TikTok briefly went dark in the U.S. on January 18, the day before the Foreign Adversary Controlled Applications Act went into effect. However, on January 19, one day before Trump began his second term, he announced plans to sign an executive order ensuring U.S. companies could continue hosting TikTok on their app stores or servers. The executive order, signed on January 20, delayed enforcement of the law by 75 days, with Trump extending the deadline further in June and most recently to September 17. Critics have argued that these extensions thwarted congressional intent, although the law gives the president broad discretion over enforcement.
Initially, Trump had advocated for banning TikTok — a policy never passed during his first term but later enacted by Biden. Trump’s position shifted over time, particularly after recognizing the platform’s potential impact on the 2024 election.
Who Is Buying TikTok?
Several investment groups have expressed interest in acquiring TikTok. Notably, a group led by former Los Angeles Dodgers owner Frank McCourt and investor Kevin O’Leary of Shark Tank fame made several public offers. However, TikTok’s valuation, likely in the tens of billions, and the inclusion of its proprietary algorithm, made their bid less feasible. They proposed purchasing TikTok’s U.S. assets without the algorithm, believing they could recreate a comparable system from scratch.
Industry analysts now view Ellison as the most likely candidate to acquire TikTok’s U.S. assets. His wealth and existing relationship with TikTok through Oracle, which began hosting TikTok’s U.S. data in 2020, position him to lead a group capable of securing the algorithm. Oracle had previously reached a tentative deal to buy TikTok under the first Trump administration, though it was ultimately blocked.
Trump Signals Deal Near Completion
On Monday, Trump hinted that a deal is close. “The big Trade Meeting in Europe between the United States of America and China has gone VERY WELL! It will be concluding shortly,” he wrote on Truth Social. “A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday.”
With this agreement, TikTok appears set to continue operations in the U.S., marking the culmination of a complex negotiation that has spanned multiple presidential terms and involved both national security and international diplomacy.
