Trump-Xi TikTok Deal Framework: What We Know About US-China Agreement
President Donald Trump and Chinese President Xi Jinping have reached a preliminary framework for a TikTok deal that would allow the popular video app to continue operating in the United States under new ownership US-China Agreement. The agreement, announced by Treasury Secretary Scott Bessent on September 15, 2025, represents a breakthrough in the years-long standoff over the Chinese-owned platform. However, both leaders have offered mixed messages about the deal’s finalization, with White House officials not disputing characterizations that no final agreement has been reached.
What the TikTok Deal Framework Includes
Ownership Transfer Structure
TikTok has received approval to spin off a new entity in the United States under different ownership as part of the long-awaited deal designed to sidestep the legally mandated nationwide ban. The framework addresses key US national security concerns about data access and algorithm control.
Key Stakeholders Involved
Multiple major US companies are participating in the potential ownership structure:
- Oracle Corporation: Oracle and Silver Lake are part of the TikTok investor group as Trump extends the deal deadline
- Silver Lake Partners: Private equity involvement in the restructuring
- Other US investors: Additional American companies expected to participate
Timeline and Next Steps
Treasury Secretary Scott Bessent indicated that Trump and Xi would finalize the deal on Friday, though recent statements suggest negotiations continue. The White House has stated that any announcement of a final deal would ultimately come from the president.
Background: The Legal Battle Over TikTok
Congressional Action
Congress passed a law last year prohibiting app store operators like Apple and Google from distributing TikTok in the U.S. due to its “foreign adversary-controlled application” status. The legislation was designed to address national security concerns about Chinese access to American user data.
Supreme Court Ruling
The Supreme Court upheld the decision in January, but since Trump’s return to office, the impending shutdown was postponed several times to find a deal, with the latest deadline being September 17.
Executive Actions
Trump postponed the shutdown in January, signing an executive order that gave ByteDance 75 days to complete a divestiture, providing breathing room for negotiations.
Impact on TikTok’s 170 Million US Users
Platform Continuity
The deal framework ensures that TikTok’s US operations will continue without interruption, protecting access for the platform’s massive American user base. This includes content creators, businesses, and casual users who have built communities on the platform.
Data Security Measures
The new ownership structure is expected to include robust data protection protocols to address US government concerns about Chinese access to American user information and potential influence operations.
Market Implications and Industry Response
Tech Sector Impact
The TikTok resolution could set precedents for how the US handles other Chinese-owned technology platforms and apps. It may influence future foreign investment reviews and national security assessments of technology companies.
Competition Landscape
With TikTok remaining operational, US-based social media platforms like Meta’s Instagram Reels and YouTube Shorts will continue competing in the short-form video market rather than potentially absorbing TikTok’s user base.
What Experts Are Saying
The deal represents a compromise between national security concerns and economic interests. Technology policy experts note that the framework allows the US to maintain oversight of TikTok’s operations while preserving the platform’s cultural and economic impact.
However, critics question whether the ownership transfer truly addresses underlying concerns about data security and algorithmic influence, given the complex technical relationships that may persist.
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Key Takeaways
- Framework Agreement: Trump and Xi have reached a preliminary TikTok deal framework, but final details remain unconfirmed
- Ownership Change: TikTok will spin off US operations under American ownership to comply with federal requirements
- Timeline Uncertainty: Despite initial Friday finalization plans, negotiations appear ongoing with mixed signals from both sides
- User Protection: 170 million American TikTok users will maintain platform access under the new arrangement
- Market Precedent: The deal could influence how future Chinese technology investments are handled in the US
- Stakeholder Involvement: Major US companies including Oracle and Silver Lake are participating in the ownership transition
Frequently Asked Questions
While Treasury Secretary Bessent initially indicated finalization by Friday, September 20, 2025, recent statements from both Trump and White House officials suggest the timeline remains fluid with ongoing negotiations.
The platform is expected to continue operating normally for American users, though there may be changes to data handling practices and content moderation policies under the new ownership structure.
The new ownership structure involves multiple US companies including Oracle and Silver Lake Partners, with additional American investors expected to participate in the arrangement.
Content creators and businesses using TikTok for marketing and revenue generation should not experience disruption to their activities, though they should monitor any policy changes under new ownership.
The TikTok agreement represents a significant diplomatic achievement in US-China technology relations and could pave the way for resolving other bilateral tech disputes.
Christine Morgan is a senior staff writer and journalist at ReadBitz.com, where she brings clarity and context to the most pressing global events. As a leading voice on the daily news desk, she is dedicated to demystifying the complex web of international affairs, politics, and economics for a diverse global readership.