U.S. Treasury Secretary Scott Bessent confirmed that the United States and China have finalized a deal regarding the future of TikTok. Presidents Donald Trump and Xi Jinping are expected to formally consummate the transaction this Thursday in Korea, effectively resolving a long-standing geopolitical and regulatory standoff.
Finalizing the Framework
The agreement follows a series of high-level negotiations, beginning with a foundational framework established in Madrid last month. Following that breakthrough, President Trump issued an executive order to streamline the transition. During a recent appearance on CBS’ Face the Nation, Bessent stated that all technical and operational details have been successfully ironed out.
“My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days,” Bessent noted. While the Treasury Secretary declined to disclose specific contractual nuances, the move marks the end of repeated deadline extensions regarding the potential ban of the platform in the U.S.
Operational Shift and New Ownership
Under the terms of the executive order, TikTok’s U.S. operations will undergo a significant structural overhaul. Key components of the platform—including the recommendation algorithm, source code, and content moderation systems—will be placed under the governance of a new board of directors. Oracle, led by Trump ally Larry Ellison, is slated to assume responsibility for security operations.
The new joint venture includes a consortium of high-profile investors. Reports indicate that, alongside Oracle, companies such as Fox Corp., Andreessen Horowitz, and Silver Lake Management are involved in the deal. Fox’s participation has been previously signaled by the Trump administration.
Broader Trade Implications
The TikTok resolution coincides with broader diplomatic efforts between the two nations. Bessent’s announcement followed trade discussions in Kuala Lumpur, Malaysia, where negotiators established a framework to address ongoing tariff disputes.
U.S. trade negotiator Jamieson Greer confirmed that these talks also touched upon the critical supply chain of rare-earth minerals. These materials are essential for semiconductor manufacturing and advanced technology sectors. With China recently signaling tighter export controls on these resources, the agreement on trade issues represents a strategic effort to stabilize economic relations between Washington and Beijing.