TikTok Deal Between U.S. and China Nears Completion Ahead of Looming Deadline

With just days left before a potential ban, U.S. and China negotiators scramble to outline a framework that could keep the app running


Just days before the deadline that could have forced TikTok out of the United States, negotiators from Washington and Beijing have outlined a framework deal to keep the app alive. The agreement, reached during trade talks in Madrid, points toward a U.S.-controlled ownership structure for the platform — though the fine print is still unwritten.

A Deadline That Forced Action

Under the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), ByteDance was required to divest TikTok’s U.S. operations by September 17, 2025, or face a nationwide ban. That clock has shaped every move in the negotiation, pushing both sides to settle on a path forward.

The framework, according to U.S. officials, centers on shifting operational control of TikTok to American ownership. President Donald Trump hinted at the outcome on social media, suggesting young users would “be very happy” once details are finalized. He is expected to speak with Chinese President Xi Jinping on Friday to confirm next steps.

What’s Known — and What’s Missing

At present, the deal is a sketch rather than a signed contract. The broad strokes are clear: U.S. ownership, oversight over data handling, and limits on Beijing’s influence. Still unclear are the most critical questions — how much of TikTok’s algorithm will be transferred, whether ByteDance retains any stake, and what role Congress will play in signing off.

Beijing, for its part, has reportedly insisted that the app retain “Chinese characteristics,” a diplomatic phrase that could become a sticking point.

Beyond an App

For the 170 million Americans who open TikTok daily, the deal is about continuity — keeping the videos, trends, and communities intact. For policymakers, though, it’s about far more: national security, data privacy, and how to regulate platforms that span borders.

Congressional leaders, already skeptical of Beijing’s access to U.S. user data, may demand tighter oversight. Tech analysts warn that even if TikTok survives, its algorithm or content moderation could change under U.S. control. And in Beijing, there will be pressure not to appear as if a prized export was handed over under duress.

The Risks Ahead

The deal’s fragility cannot be ignored. Congress could still block it, implementation could stall, or disagreements over intellectual property could derail the effort. Even if signed, enforcement will raise difficult questions: where TikTok’s servers sit, how its algorithm evolves, and who audits compliance.

What This Signals

If finalized, the agreement could set precedent for how the U.S. handles foreign-owned apps in the future. Data sovereignty, algorithmic transparency, and cross-border tech regulation are likely to move higher on Washington’s agenda. Other countries, watching closely, may follow suit with their own laws.

A Pause, Not a Conclusion

For now, the deal buys time — and relief — for millions of creators and users. But it’s not the end of the TikTok saga. The outcome of Friday’s Trump-Xi call will decide whether this framework becomes a durable solution or another brief truce in the long contest between U.S. security concerns and China’s technology ambitions.

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By George Kamau

I brunch on consumer tech. Send scoops to george@techtrendsmedia.co.ke

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