The United States and China have reached a deal that would allow social media app TikTok to continue operating in the former country, US President Donald Trump told the Associated Press.
Trump stated he would speak with Chinese President Xi Jinping on Friday to confirm the agreement, adding that they had reached a “very good trade deal”. This deal would apparently involve the sale of TikTok to a group of American companies, although Trump declined to reveal their identities.
He had also posted about this latest development in a cryptic manner on Truth Social on September 15, referring to TikTok as a company that American youth wanted to save.
This news comes over a year after the US passed the “Protecting Americans from Foreign Adversary Controlled Applications Act”: which defined TikTok’s Chinese parent company ByteDance as a ‘foreign adversary’. The Act essentially forces ByteDance to either divest its interest in the app or face a ban in the US. Notably, the deadline for this legislation to come into force was September 17.
Following the deal between the two countries, the White House issued an Executive Order (EO) delaying the Act’s enforcement until December 16, 2025. During this period, the US Department of Justice (DOJ) would make no attempt to enforce the Act or impose any penalties on parties found in violation.
Similarly, US Attorney General Pam Bondi would issue a letter to providers stating that there has been no violation of the law during this time period. The EO also instructed Bondi to prevent states or private parties from enforcing the Act themselves.
According to Reuters, the new deal would see TikTok’s US operations siloed off into a new company, with ByteDance remaining as the single largest stakeholder of TikTok at 19.9%. The other shareholders would be American companies. Notably, US users would also have a standalone app, with their data kept separate from those of other countries. And TikTok US would also likely be able to access ByteDance’s algorithm.
According to US Treasury Secretary Scott Bessent, the deal would allow TikTok to retain its ‘Chinese characteristics’, which was something that Chinese negotiators were concerned about.
For their part, the Chinese government called the agreement a “win-win” and said it would review TikTok’s technology exports and intellectual property licensing.
Background on the TikTok Ban:
The US Government had passed the “Protecting Americans from Foreign Adversary Controlled Applications Act” in March last year, which penalises app stores in the country from listing TikTok or any other application developed or provided by ByteDance.
It defines a foreign adversary as a company headquartered anywhere in China, North Korea, Russia and Iran. It also includes any company in which individuals/entities from a foreign adversary country or a person subject to the control of such a country owns a minimum 20% stake. Any…
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