Trump Administration Reaches Framework Deal with China, Extending TikTok deadline
WASHINGTON – The trump administration has reached a framework agreement with China regarding TikTok, averting a potential ban of the popular video-sharing app in the United States. Treasury secretary Steven Mnuchin revealed the deal Monday, prompting President Trump to extend a deadline that would have effectively forced TikTok to shut down within the U.S.
The arrangement, detailed in reports by the Wall Street Journal and CNBC, involves a partnership with oracle and Walmart to create a new U.S.-based company, TikTok Global, intended to address national security concerns. Existing U.S. users would be shifted to this new app. Investors in the deal include Silver Lake and Andreessen Horowitz, alongside existing ByteDance investors.
This advancement marks a notable shift in the administration’s approach to TikTok, which has faced scrutiny over its ties to the Chinese government and potential data security risks. The deal’s commercial terms were reportedly finalized “in essence” as early as March or April, but were stalled by China following the implementation of Trump’s tariffs and trade policies.
According to Mnuchin,President Trump’s willingness to allow TikTok to “go dark” in the U.S. ultimately motivated China to reach an agreement.Oracle will continue to provide cloud computing services to TikTok as part of the deal.
A senior White House official cautioned that details of the framework remain speculative until officially announced by the administration. TikTok has not yet responded to requests for comment. The deal is expected to close within 30 to 45 days.
