Treasury Secretary Scott Bessent announced on CBS News’ Face the Nation that the United States and China have finalized the terms of a deal concerning the social media platform TikTok. This agreement is expected to be publicly confirmed during a meeting between President Donald Trump and Chinese President Xi Jinping on Thursday in South Korea.
The announcement marks a significant development following a lengthy negotiation process focused on TikTok’s algorithm, ownership structure, and its operation within the United States. Concerns regarding national security have driven these discussions, particularly regarding the app’s Chinese ownership under ByteDance. Previous administrations, including Trump’s, raised alarms about potential data privacy risks associated with the app.
According to Bessent, the deal reached in Madrid outlines a framework that will see TikTok transformed into a new joint venture owned primarily by American investors. The consortium, which includes tech giant Oracle and investment firm Silver Lake Partners, is expected to hold approximately 80 percent ownership of the new entity, while ByteDance will retain a 20 percent stake. The board managing this new platform will be predominantly composed of U.S. investors, effectively removing any significant influence from its Chinese parent company.
The deal is critical as TikTok has become a major source of news for many young Americans. A recent report from the Pew Research Center indicated that around 43 percent of U.S. adults under 30 regularly get their news from TikTok, surpassing other social media platforms such as YouTube, Facebook, and Instagram.
Bessent emphasized the successful negotiations with China, stating, “We reached a final deal on TikTok… I believe we successfully accomplished that over the past two days.” This assertion comes as Trump prepares for his Asia tour, which includes attendance at the Association of Southeast Asian Nations (ASEAN) meeting in Malaysia before heading to South Korea.
The proposed agreement aims to address long-standing concerns about TikTok’s data handling and influence, particularly in light of a U.S. regulation that mandates any divestment of TikTok from ByteDance must sever their ties entirely. The ongoing security debate has revolved around TikTok’s recommendation algorithm, which has raised alarms about data control and potential misuse.
The backdrop to this negotiation includes a broader economic context marked by trade tensions between the U.S. and China, particularly surrounding tariffs. Bessent suggested a potential easing of these tensions, stating, “I can tell you we had a very good two days… the threat of the 100 percent [tariff] has gone away.”
Former Secretary of Labor Robert Reich has voiced concerns about the implications of the deal, highlighting the concentration of media ownership among a small number of wealthy individuals. Conversely, Vice President JD Vance expressed optimism, asserting that the deal allows Americans to use TikTok with greater confidence regarding their data security.
Looking ahead, Trump is also planning to visit Japan during this tour, and he has indicated a desire to meet with North Korean leader Kim Jong Un. The finalization of the TikTok deal represents a significant step in U.S.-China relations, potentially reshaping the dynamics of technology, trade, and security in the region.
