TikTok’s future in America, long in doubt, may have been saved. After weeks of tense diplomacy and political brinksmanship, Washington and Beijing have reached a framework agreement that could preserve the app for America’s 170 million users.
The deal, announced after Madrid talks, means TikTok’s US operations will be put in American hands. Treasury Secretary Scott Bessent said that the US investors will own a majority stake and ByteDance, the Chinese parent company, will have its control watered down. Temporarily, the deal pushes back a looming September 17 deadline, when the app would have been banned.
TikTok was the subject of fierce political debate in the United States, with politicians voicing concerns over data security, users’ privacy, and external control. Congress voted through legislation mandating Chinese-owned apps to divest themselves or face delisting from U.S. app stores earlier this year. The new regime is to function within those rules without losing the app’s massive scale and cultural presence.
However, the agreement puts several central questions in abeyance. How much of TikTok’s extremely prized recommendation algorithm will ByteDance keep? Will US regulators demand a full handover, or be content with licensing agreements? And how much will China allow its champion tech export to be reshaped by foreign regulation?
Beijing has already indicated that any sale of intellectual property or algorithms must be consistent with its stringent export controls. Chinese officials described the deal as a “win-win,” but indicated they will carefully review the terms before signing off.
For American TikTok users, the framework brings at least temporary relief. Small businesses, influencers, and creators who rely on the platform for their livelihoods can keep interacting with audiences without the threat of a sudden shut-off. For them, the app is entertainment—not just entertainment—a living.The next steps will depend on whether or not politicians in Washington and Beijing can make the deals happen. An impending phone call between President Donald Trump and Chinese President Xi Jinping is bound to seal—or put off—fate. In the meantime, TikTok is both a global lightning rod and everyday ritual for tens of millions.
