US and China Finalize TikTok Deal for Thursday Signing

The long-standing dispute over TikTok’s future in the United States is nearing a resolution. Treasury Secretary Scott Bessent announced that the U.S. and China have finalized an agreement regarding the platform, with plans for President Donald Trump and President Xi Jinping to formally consummate the deal this Thursday in Korea.

Bessent confirmed the breakthrough during an appearance on CBS’ Face the Nation on Sunday. According to the Treasury Secretary, the groundwork for this conclusion was established last month during negotiations in Madrid. Since then, President Trump signed an executive order to pave the way for the transition of the app’s ownership.

Terms of the TikTok Transaction

While specific financial details remain undisclosed, the structural changes to TikTok’s U.S. operations under the executive order are clear:

• A new board of directors will assume control over U.S. operations.
• Key technical assets, including the recommendation algorithm, source code, and content moderation systems, will be managed under this new governance.
• Oracle, led by Larry Ellison, will take responsibility for the platform’s security operations.

Investment in the new joint venture reportedly includes firms such as Andreessen Horowitz and Silver Lake Management, alongside Fox Corp. President Trump has previously indicated his support for Fox’s involvement in the deal, which effectively resolves the threat of a nationwide ban that had been looming over ByteDance.

Broader Trade Negotiations

The announcement regarding TikTok coincides with broader discussions between the two superpowers. Speaking from Kuala Lumpur, Malaysia, Bessent noted that negotiators have been working to resolve lingering tensions.

U.S. trade negotiator Jamieson Greer confirmed that discussions also touched upon a framework for an agreement involving tariffs and trade policies. A significant point of interest in these talks is the supply of rare-earth minerals, which are essential for semiconductor production and advanced technology manufacturing.

“We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics,” Greer stated, following recent signals from Beijing that it plans to implement stricter export controls on these critical materials.