TikTok's Global Tug-of-War: The New U.S.-China Agreement
President Trump announced an agreement to keep TikTok operating in the U.S. by transferring its assets from China's ByteDance to U.S. ownership. The final agreement's details are still uncertain, and changes may occur. The deal retains ByteDance's ownership but complies with U.S. regulations.
In a move marking a significant development in the ongoing U.S.-China tech tussle, President Donald Trump has revealed an agreement to maintain TikTok's operations in the United States. The deal involves transferring TikTok's U.S. assets from China's ByteDance to American ownership, echoing a similar arrangement proposed earlier this year, according to informed sources.
On Tuesday, President Trump revealed the emergence of serious interest from several major companies poised to acquire TikTok. The original agreement was stalled in the spring owing to Chinese opposition following Trump's imposition of hefty tariffs on Chinese products. Notably, the agreement involves forming a new U.S.-based company, predominantly owned by U.S. investors, to manage TikTok's American operations.
The sophisticated restructuring plan, while mainly approved earlier by existing and new investors, ByteDance, and the U.S. government, maintains that ByteDance holds a 19.9% stake, just under the legal limit. While the framework is largely stable, specific final terms remain pending, influenced by last-minute amendments. The successful launch of TikTok's standalone U.S. app is contingent upon the final accord between Washington and Beijing.
(With inputs from agencies.)
Google News