The fate of TikTok, which has millions of users, could be decided this week. Years of political debate, lawsuits, and ban threats appear poised to end. US Treasury Secretary Scott Bessent announced a significant development on Sunday. Bessent said US President Donald Trump and Chinese President Xi Jinping are expected to “finalize” a long-negotiated agreement on Thursday. This agreement will allow TikTok to continue operating in the US under new ownership terms.
US and China reach agreement: TikTok crisis over
Of course, it’s possible Thursday could come and go without an agreement. Dates and deadlines have been flexible throughout the process. President Trump has previously set numerous deadlines for changes related to TikTok, which he has postponed several times. TikTok even went offline briefly in January, hours before a planned ban, only to return the next day. The app’s controversial history in the US began in 2020, when Washington raised concerns about its Chinese ownership and potential data breaches.
Congress passed a law in 2024 that forces TikTok’s Beijing-based parent company, ByteDance, to divest (sell) its US operations or face a complete ban. The video-sharing site has since faced multiple executive orders, court battles, and failed acquisition attempts. The US Supreme Court upheld the divestiture order earlier this year, rejecting claims that the ban would violate free speech. This decision forced both sides to return to the negotiating table. On September 25, Trump signed an executive order allowing the new ownership to be based in the US and comprised mostly of American investors.
A key component of the deal is TikTok’s algorithm. The White House confirmed in September that TikTok’s algorithm will be operated in the US and overseen by American tech company Oracle. Private equity firm Silver Lake and Dell Technologies founder Michael Dell will also be among the investors. Trump also said News Corp founder Rupert Murdoch and his son Lachlan Murdoch would be part of the ownership group. However, CNN later reported that the investor would not be the Murdochs individually, but their media company, Fox Corp.
The move has become a controversial issue due to US concerns that ByteDance, TikTok’s primary Chinese owner, could be pressured by the Chinese government to use these suggestions in pro-China and anti-US ways. Under the new TikTok agreement, the algorithm will be retrained on US user data.
For TikTok users, this alleged agreement could preserve access to the app, which has become a cultural staple in the US, and mitigate the threat of a shutdown. As part of the new arrangement, TikTok’s US user data will be stored domestically and overseen by a dedicated oversight board. This could reassure many Americans with data privacy concerns. Trump and Xi will meet again in Korea on Thursday, meaning a TikTok deal could be announced by the end of this week. However, the implementation of the deal and the change of ownership will likely take months.
There are also concerns about the new structure. The fact that Oracle co-founder Larry Ellison is a personal friend of Trump’s has some users worried that the algorithm could favor right-leaning political content. A recent report on NPR reported that analysts say this could happen, but they will need to avoid alienating existing audiences. So, what are your thoughts on this new structure? Will this agreement address your data security concerns?
