TikTok’s Future in the US: White House Confirms American Control of New Entity
The United States is moving towards a resolution in its ongoing effort to restructure TikTok’s US operations, aiming to separate it from its Chinese parent company, ByteDance, due to national security concerns. Under the Biden administration,and following a law passed by Congress,ByteDance faces a potential ban on the app unless it divests its US assets.
concerns raised by US policymakers, dating back to the Trump administration, center on the possibility of China utilizing TikTok to collect data from American users or influence the content they consume. Tho, former President Donald Trump, during his 2024 presidential campaign, repeatedly delayed implementing the ban while seeking a negotiated solution.
Recent developments suggest a deal is progressing.white House officials have indicated that Americans will dominate the board of a new TikTok US entity. Leavitt, speaking to Fox News, confirmed that Oracle, the tech firm owned by Larry ellison, a prominent Trump supporter, will lead data privacy and security efforts. She also stated that control of the app’s algorithm will reside within the United States, adding, “all of those details have already been agreed upon. Now we just need this deal to be signed.”
China has acknowledged the ongoing negotiations, reiterating its position that ByteDance should be able to pursue commercial negotiations ”in accordance with market rules” to reach a solution compliant with Chinese laws and regulations, and balancing the interests of both nations. The Commerce Ministry statement,released after Trump announced progress in talks with President Xi Jinping,mirrors previous statements from the past week.
Key questions remain regarding the final ownership structure, the extent of China’s continued influence over TikTok’s operations, and the potential benefits Beijing will receive in exchange for allowing US involvement in one of its most prosperous companies.
The resolution of the TikTok issue is viewed as potentially unlocking concessions in other trade areas between the US and China, including sectors like aerospace and agriculture. China hopes the US will fulfill commitments to create an open,fair,and non-discriminatory business environment for Chinese enterprises operating within the US,including TikTok.
A framework deal reached in madrid earlier this week has been described by Chinese officials and state media as a “win-win,” with promises to review TikTok’s technology exports and intellectual property licensing. This deal addressed a key requirement set by the US Congress, which originally mandated the app be shut down for US users by January 2025 if ByteDance failed to sell its US assets.
he Yadong, a spokesperson for China’s Commerce Ministry, emphasized China’s desire for the US to reduce trade barriers for Chinese firms when questioned about the benefits of the Madrid deal. TikTok currently has 170 million users in the United States.
