According to U.S. Treasury Secretary Scott Bessent, China has approved the transfer agreement concerning TikTok’s U.S. operations. Speaking from Kuala Lumpur, Bessent said the agreement is now expected to move forward over “the coming weeks and months” as the final deal is consummated by the relevant parties. Although no detailed commercial terms have been made public, this marks a major breakthrough in the long-running negotiation between the United States and China over the short-video app’s future in the U.S. market.
China’s Ministry of Commerce released a statement saying it will “properly handle TikTok-related issues with the United States,” indicating Beijing’s readiness to cooperate on the matter. Previously the sticking point had been the ownership structure, data access and the algorithm underlying the app’s recommendation engine. With China’s sign-off, the path appears clearer for a U.S.-based entity to assume control of TikTok’s American operations.
TikTok, owned by China-based ByteDance, has been under intense scrutiny in Washington over national-security concerns, including access to U.S. user data, algorithmic influence and eventual ties to the Chinese state. In April 2024 the U.S. enacted the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which mandated that certain foreign-controlled apps must either divest or face a ban within a defined period.
The law, combined with regulatory and congressional pressure, created a deadline for ByteDance to sell its U.S. assets of TikTok, or for the U.S. government to pull the app from U.S. app stores. Over the intervening months, the Trump administration extended enforcement deadlines multiple times while negotiations and deal-structures were developed.
In September 2025, U.S. and Chinese officials announced they had reached a framework agreement in Madrid that laid out high-level terms: a U.S.-majority investor consortium would take over TikTok’s U.S. operations, ByteDance would retain less than a 20 % stake, American board control would be established, and data and algorithmic control would be placed under U.S. oversight. The formal green-light now reportedly given by China means the final pieces can fall into place.
What the Deal Likely Involves
While full details remain confidential due to the commercial nature of the transaction, public commentary offers insight into key deal components. The proposed structure (as previously reported) includes a new U.S.-based entity for TikTok. Americans would hold the majority of board seats, with ByteDance retaining a minority position (under 20 %) in order to satisfy statutory requirements.
One central point is that the algorithm powering TikTok’s feed, a highly valuable and sensitive asset would be licensed or transferred to the new U.S. entity, and control of U.S.-user data would be secured under American infrastructure and governance.
Bessent emphasised that his role was not commercial; his objective was to secure Chinese approval so that the deal could proceed, which he says has now been achieved.
This development carries both strategic and geopolitical weight. For the U.S., successfully facilitating this deal allows TikTok to continue operating in America while alleviating national-security concerns about foreign control and data access. It also signals a diplomatic thaw in U.S.–China tech tensions, at least in one dimension.
For China, approving the transfer may reflect a strategic willingness to use TikTok as part of broader economic or trade positioning. Analysts suggest Beijing could frame the approval as a demonstration of reciprocity in technology and investment matters, potentially easing pressure on other fronts such as export controls or tariffs.
For TikTok itself, the deal means continued access to the U.S. market critical for its business vitality and an opportunity to restructure its corporate governance to satisfy Washington’s demands.
Even with the approval, significant uncertainties remain. First, the deal still needs to be fully executed: investor agreements, regulatory filings, divestitures and operational transitions must all conclude before the transfer is complete. Bessent emphasised the agreement “will go forward in the coming weeks and months.”
Second, oversight and implementation challenges persist. Critics worry that the algorithm could still be influenced by ByteDance or by actors tied to Beijing, despite the promised U.S. majority control. Republican Rep. John Moolenaar, chair of the House Select Committee on China, has warned that even a licensing deal could raise serious concerns if Chinese influence remains.
Third, the deal intersects with broader trade and regulation dynamics. If the corporate entity fails to meet performance benchmarks, if data management fails to satisfy oversight expectations, or if Chinese regulations block certain transfers of algorithmic technology, the transaction could stall or face new scrutiny.
Finally, public trust and congressional support remain fragile. Lawmakers will closely monitor how U.S.-user data is protected and whether governance actually shifts materially. Any misstep could reignite bans or legal enforcement actions.
The next few weeks and months will focus on execution and regulatory approval. U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea, with the expectation that a formal sign-off could occur during or after that summit.
Upon completion, ByteDance will relinquish majority control of TikTok’s U.S. operations, American investors and governance will take the lead, and algorithm/data oversight mechanisms will need to be deployed. Then the U.S. law that mandated divestment or ban will be rendered moot, allowing TikTok to continue operating under the new structure.
China’s approval of the TikTok transfer agreement represents a major milestone in the app’s U.S. future and in U.S.–China technology diplomacy. While the detailed commercial terms remain undisclosed, the broad structure, a U.S.-majority owner, minority stake for ByteDance, algorithm and data oversight now appears within reach.
The success of this transaction will hinge less on the announcement and more on how effectively the new governance model operates, how data protections are enforced, and how trust is restored among U.S. policymakers and the public.
As the deal progresses towards completion, the world will be watching not only how TikTok’s business adapts, but also how it influences future tech-transfer negotiations, data-sovereignty debates and the global interplay between American and Chinese technology ecosystems.
