Trump Administration Strikes Deal with China to Keep TikTok in the U.S.
The Trump administration has reached a breakthrough deal with China to allow TikTok to continue operating in the United States, officials confirmed on Monday. The agreement marks the end of a years-long standoff over the popular video-sharing app that began during President Donald Trump’s first term.
U.S. Treasury Secretary Scott Bessent announced that a framework agreement has been secured, with Trump expected to finalize the deal in a call with Chinese President Xi Jinping on Friday.
“President Trump played a key role in this process. We spoke with him last night and received clear guidance, which we shared with our Chinese counterparts. Without his leadership and leverage, we could not have reached this deal,” Bessent said during talks in Madrid.
While the administration has not confirmed the U.S.-backed buyer, industry insiders expect the deal to be led by Oracle’s executive chairman Larry Ellison, who recently became one of the richest men in the world. Trump has long supported Ellison’s interest in acquiring TikTok’s U.S. assets.
TikTok at the Heart of U.S.-China Talks
The deal comes as U.S. and Chinese diplomats held high-level trade discussions in Spain this week. Treasury officials made it clear that TikTok was a top priority during negotiations.
“We focused on ensuring that TikTok’s future in America respects U.S. national security while remaining fair to China,” said U.S. Trade Representative Jamieson Greer. “Our goal is to protect U.S. interests while giving Chinese companies a fair and transparent investment environment.”
TikTok’s parent company ByteDance has not yet commented on the announcement.
TikTok’s Legal Battle in the U.S.
TikTok has been at the center of a legal and political battle for years. Under a bipartisan law signed by former President Joe Biden, TikTok faced a U.S. ban unless its China-based parent company divested ownership of its American assets.
The app briefly went offline on January 18, when the Foreign Adversary Controlled Applications Act came into effect. However, Trump, just one day before starting his second term, pledged to issue an executive order protecting U.S. companies from penalties for hosting TikTok.
The order was signed on January 20, delaying enforcement of the law by 75 days. Trump has since extended the deadline multiple times, with the latest date set for September 17.
Critics argue these extensions undermined the will of Congress, but Trump defended his approach, pointing to TikTok’s role in his 2024 election success. The app now has an estimated 170 million U.S. users, many of them young voters who shifted more Republican in the last election cycle.
Who Could Own TikTok’s U.S. Business?
Several investment groups have expressed interest in acquiring TikTok. Among them are former Los Angeles Dodgers owner Frank McCourt and “Shark Tank” investor Kevin O’Leary, who made public offers to ByteDance. However, their bid fell short, as analysts estimate TikTok’s U.S. business could cost tens of billions of dollars.
That leaves Larry Ellison’s Oracle as the strongest contender. Oracle already has an existing partnership with TikTok, hosting its U.S. user data since 2020. Ellison also led a similar bid during Trump’s first administration, though that deal was blocked at the time.
Industry experts believe Ellison has the resources to purchase not only TikTok’s U.S. assets but also the algorithm that drives its addictive video feed — something ByteDance has been reluctant to sell.
A Turning Point in U.S.-China Relations
China has resisted allowing ByteDance to divest its stake in TikTok. But rising trade tensions, combined with Beijing’s recent announcement that Nvidia violated Chinese antitrust laws, appear to have shifted its stance.
The TikTok agreement is expected to set the stage for a long-anticipated meeting between Trump and Xi Jinping, which could take place later this year during Trump’s planned Asia trip.
On his social media platform Truth Social, Trump signaled optimism about the deal:
“The big Trade Meeting in Europe between the United States of America and China has gone VERY WELL! It will be concluding shortly. A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday.”
The Bigger Picture
The TikTok deal represents more than just the future of a popular app. It highlights the growing intersection of technology, trade, and national security in U.S.-China relations.
For Trump, securing a deal that keeps TikTok alive in the U.S. while addressing security concerns is both a political win and a strategic move to reinforce ties with younger voters. For China, it offers a chance to ease tensions and maintain access to the American market amid an escalating trade war.
With Trump and Xi preparing to speak directly later this week, the agreement may also serve as the first step toward a broader reset in relations between the world’s two largest economies.