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The U.S. and China have struck a framework deal on TikTok, but questions over ownership, algorithms and politics show the rivalry is far from over.
The United States and China have agreed on a framework that could see TikTok’s U.S. operations shift from Chinese parent company ByteDance to an American company. The deal, reached during trade talks in Madrid on Monday, is the latest step in a long-running saga that has stretched across two presidencies, multiple court battles, and repeated deadline extensions.
But this is about more than just a corporate takeover. The negotiations show how Washington and Beijing now treat social media platforms as strategic assets tied to national security, trade, and cultural influence.
From ByteDance to “Who?”
Treasury Secretary Scott Bessent confirmed in Madrid that TikTok would “switch from being owned by Chinese company ByteDance to being owned by a U.S. company”. It is not yet clear which firm will take over, though Oracle, which has close political ties to President Donald Trump, has been widely tipped.
For Bessent, the issue is simple.
“They’re interested in Chinese characteristics of the app, which they think are soft power. We don’t care about Chinese characteristics. We care about national security," he said during the Madrid briefing.
In other words, China sees TikTok as a soft power tool, while the U.S. sees it as a security risk.
To ban or not to ban, is the question
In 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which required TikTok to be sold on security grounds. The Supreme Court upheld the law, forcing ByteDance to either divest or face a ban in the U.S.
But enforcement has been repeatedly delayed. Trump, who first went after TikTok during his first term, has now extended deadlines several times since returning to office. The current extension expires this week, though officials are already signalling another 90-day reprieve to allow more time.
Even if Trump and Xi agree, Congress will need to approve the deal, adding another layer of uncertainty.
Continue reading on the Asia Media Centre Website to know what's the Algorith Question, and what's next for the deal.
-Asia Media Centre
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