China and the United States have reportedly made progress regarding the potential sale of TikTok from ByteDance to an American consortium, addressing a legal requirement that has been overdue for nine months. After an announcement stating that a tentative deal had been reached, the Trump administration provided an update that did not clarify the current situation.
President Trump indicated, via his platform Truth Social, that he recently spoke with Chinese President Xi Jinping. Trump mentioned that progress was made on several issues, including the TikTok deal. He noted that he and Xi would meet at the APEC Summit in Korea in October and described their conversation as productive, emphasizing the importance of the TikTok approval.
While Trump’s comments might suggest that an agreement is imminent, the phrasing used does not provide definitive clarity. TikTok, in its response on X (formerly Twitter), thanked both leaders for their efforts to continue the app’s availability in the U.S. and indicated that ByteDance would adhere to applicable laws to ensure this.
The anticipated consortium of buyers includes Oracle, Andreessen Horowitz, and Susquehanna International Group. Reports suggest that ByteDance would retain just under 20% ownership in TikTok, in compliance with a divest-or-ban law passed by Congress in 2024. The new consortium is expected to develop a version of the app with a recommendation algorithm isolated from Chinese oversight.
TikTok users remain uncertain about the app’s future, expressing concerns that ongoing trade tensions might affect the agreement. There is currently no defined timeline for reaching a resolution on the sale.
Source: https://www.theverge.com/policy/781967/tiktok-deal-us-china-still-ambiguous