The US and China have reportedly reached a basic agreement on changing TikTok’s ownership, which would avoid a nationwide ban on the app. However, the lack of details, legal doubts and a history of failed deals make the market and users skeptical of the statements.
The Donald Trump administration reported that the US and China have agreed on a “framework” for a TikTok deal after talks in Madrid; Beijing speaks of a “basic consensus.” According to unofficial briefings, ByteDance’s share in the US could drop to <20%, and China’s access to Americans’ data could be blocked. Oracle is mentioned among the potential consortium members. At the same time, a key asset — the recommendation algorithm — could allegedly remain with ByteDance and be transferred to an American legal entity under license, “preserving Chinese characteristics.” This is what causes the most reservations among politicians and the community: fears of content manipulation, as well as possible politicization of the service in the event of an acquisition by a platform with close ties to Trump. Lawyers point out that repeated extensions of deadlines under the forced sale/closure law can be challenged in Congress and the courts, and a “verbal agreement” without public documents is not a basis for removing risks.
Last year’s law obliged ByteDance to sell TikTok in the US or wind down operations by January 2025. The deadlines have already been extended three times. Previous attempts to reorganize ownership (including with the participation of American companies) have failed at the finish line. On Capitol Hill, “hawks” insist: control of ByteDance and its algorithm must be completely terminated, with transparent mechanisms for overseeing cybersecurity and data sovereignty.
With no agreement text and the key question of who will own and control the algorithm unresolved, talk of a “victory” seems premature. Another postponement or revision of the terms after Congressional scrutiny is likely. Users and businesses should plan for prolonged uncertainty and possible regulatory reversals.
