On Tuesday, President Donald Trump announced that the United States and China have reached an agreement that will allow the continuation of the popular short video application TikTok in the U.S. The deal involves transferring its U.S. assets from the Chinese company ByteDance to American owners, potentially resolving a long-standing issue that has persisted for nearly a year.
This agreement, concerning the widely used social media platform with 170 million American users, represents a significant milestone in ongoing discussions between the world’s two largest economies as they attempt to defuse a major trade conflict that has raised concerns among global markets.
Trump stated, “We have an agreement on TikTok… a number of major companies are interested in purchasing it,” although he did not provide specific details about the terms of the deal.
The President praised the agreement with China, describing it as a progression in bilateral relations and suggesting it would maintain economic value in the tens of billions of dollars.
He noted, “Kids want it so much that their parents are calling me. They don’t want it for themselves, but for their children.”
Any final agreement may need approval from Congress, which is currently under Republican control. In 2024, legislation was passed requiring the application to divest its U.S. operations due to concerns about the Chinese government’s potential access to data from American TikTok users, which could allow Beijing to conduct espionage or influence operations through the app.
Trump’s administration has repeatedly resisted enforcing laws mandating the app’s closure for fear of alienating millions of users and disrupting political communication.
The President had previously praised TikTok for its role in boosting his campaign during the last presidential election, where his personal account has 15 million followers. Recently, the White House launched an official TikTok account.
According to CNBC, the agreement is expected to be finalized within 30 to 45 days and will involve existing investors in ByteDance along with new investors. Reuters has not independently verified these reports.
Officials from both countries reached a framework agreement on Monday, marking a significant achievement after months of intense negotiations. The White House was notably involved, closely monitoring the progression of the agreement.
In light of escalating trade tensions, delegations from the U.S. and China discussed the matter of divestment amid broader disputes related to tariffs and technology export regulations.
A final confirmation of the deal is anticipated during a phone call between Trump and Chinese President Xi Jinping on Friday.
Several interested parties, including Frank McCourt, the former owner of the Los Angeles Dodgers, as well as Amazon and a startup managed by the founder of OnlyFans, have expressed interest in the rapidly growing business, which analysts estimate could be valued at $50 billion.