The United States and China have inched closer to a deal that could reshape the future of TikTok’s U.S. operations. A senior White House official confirmed that the agreement under discussion would give Americans control of the platform’s management, leaving China’s ByteDance with a limited role.
Under the arrangement, six of seven board seats in the new U.S.-based entity would be held by Americans, while ByteDance would choose just one member. This structure is designed to address national security concerns while allowing TikTok to continue operating in the United States, where it has a massive user base of 170 million people.
Background on the Ban Threat
The deal comes in response to a 2024 law passed by Congress, which required TikTok to be sold by its parent company, ByteDance, or face a complete shutdown in the U.S. by January 2025. Lawmakers had raised alarms about China’s potential influence over user data and the app’s recommendation system.
President Donald Trump, who has opposed an outright ban, extended the deadline to mid-December to allow more time for negotiations. His administration is seeking a path that ensures U.S. control of the platform while preserving its popularity among American users.
Progress Amid Tense Relations
This tentative agreement is being seen as a rare sign of cooperation between the world’s two largest economies. Relations between Washington and Beijing have been fraught with trade disputes and competition over technology.
Trump said he discussed TikTok directly with Chinese President Xi Jinping in a recent phone call and that the two leaders plan to meet in person in about six weeks. While the White House has described the talks as productive, Chinese officials have provided little detail about their position.
The White House official noted that Trump intends to extend the current pause on enforcement of the law by another 120 days, which would push the deadline for finalizing the deal into April 2025.
Questions From Lawmakers
Despite signs of progress, Congress remains cautious. Lawmakers want clear answers on whether the deal satisfies the legal requirement for a complete divestiture from ByteDance. Some members of Congress are concerned that China could still maintain indirect influence over TikTok’s U.S. operations.
Representative Frank Pallone, a Democrat, has been among those raising concerns. He emphasized that Congress would scrutinize the arrangement closely to ensure it does not compromise U.S. data security or political independence.
Trump’s Stake in TikTok
For Trump, TikTok also carries political significance. He has credited the platform with helping him during his 2024 re-election campaign, where he built a following of more than 15 million users. His administration also launched an official White House TikTok account last month, signaling the importance of the app as a communications tool.
The president’s efforts to preserve TikTok under new ownership highlight the platform’s role not only as a social media giant but also as a cultural and political force in the U.S.
Data Security at the Core
A key part of the proposed deal centers on data protection. The White House official said that TikTok’s U.S. user data will be stored exclusively on Oracle’s cloud infrastructure, a move aimed at preventing Chinese access.
Perhaps the most significant element involves the TikTok recommendation algorithm, which determines what content users see. Under the agreement, the algorithm will be rebuilt and operated in the U.S., outside ByteDance’s control. The official explained that this retraining process will use American data and take place under strict U.S. supervision.
U.S. officials have long feared that China could exploit TikTok’s algorithm to influence American users. Reports earlier this year suggested that the algorithm might be licensed from ByteDance, but Washington is pushing for a system that remains fully under American oversight.
Continued Global Reach
Despite these sweeping changes, the app will not lose its international flavor. The official noted that American users will still be able to access global content, keeping TikTok’s international community intact.
The U.S. entity overseeing TikTok will be majority-owned by American investors and managed by a board with expertise in national security and cybersecurity, ensuring compliance with government expectations.
ByteDance’s Reduced Role
While ByteDance will not fully disappear from TikTok’s U.S. operations, its stake will be reduced to less than 20% of the new joint venture. This marks a significant reduction in influence compared to its current position as the app’s global owner.
ByteDance’s investors — including Susquehanna International Group, General Atlantic, and KKR — are expected to remain involved, though American ownership will dominate.
So far, TikTok, China’s Ministry of Commerce, and the Cyberspace Administration of China have not publicly commented on the reported agreement. Analysts note that Beijing’s reaction will be critical, as ceding even partial control of one of its most successful tech exports could prove politically sensitive.
Even if the deal is finalized, it may face legal and political hurdles in Congress, where lawmakers will want to ensure the arrangement matches the intent of the 2024 law.
