U.S. and China Agree on Terms for a TikTok Ownership and Security Deal

Talks over the future of TikTok in the United States appear to be moving toward resolution. Treasury Secretary Scott Bessent says the U.S. and China have completed the terms of an agreement, clearing the way for both sides to proceed.

Good to Know

• U.S. and China have agreed on a TikTok deal framework
• Final confirmation is expected when national leaders meet in Korea
• TikTok U.S. operations will transition to a new board with Oracle handling security

Agreement Reached After Months of Negotiations

Bessent said the two governments have now finalized a deal, following discussions in Madrid where negotiators put together the original framework. The agreement comes as the United States has continued pressuring ByteDance to divest TikTok or risk losing access to the U.S. market.

On CBS Face the Nation, Bessent said:

“We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.”

He did not share the terms, but said his responsibility was to ensure that Chinese officials approved the structure required to move forward. He stated that approval is now in place.

Background to the Deal

President Donald Trump previously signed an executive order that requires ByteDance to sell the TikTok U.S. business to avoid a nationwide ban. The federal government has extended the compliance deadline multiple times while negotiations continued.

Under the current plan, TikTok’s U.S. side will be reorganized:

• A new board of directors will oversee U.S. platform operations
• Oracle will handle data security and oversight of the recommendation system, source code access, and moderation
• The arrangement is intended to keep U.S. user data and platform control separate from ByteDance corporate governance

Next Steps

Both governments are expected to publicly confirm the agreement during a planned meeting in Korea later this week. If finalized, this would mark the first stable resolution in a years-long debate over TikTok’s ownership and data governance inside the U.S.

Industry analysts say the implementation stage will be closely watched. The transfer of oversight for the algorithm and moderation systems will likely be the most complex piece.

The Treasury Secretary signaled confidence that the last remaining hurdles have been resolved.

FAQ

Why is TikTok required to restructure in the U.S.?

U.S. law requires foreign-owned platforms with large-scale data access to meet domestic security standards. The government argued TikTok needed a governance overhaul to comply.

Does this mean TikTok will stay available in the U.S.?

If the agreement is formalized as expected, TikTok will continue to operate in the U.S. under a new controlling structure.

What role will Oracle play?

Oracle will oversee data storage, platform security, and the systems that influence content recommendations.

Will ByteDance still own TikTok globally?

ByteDance would retain ownership but TikTok’s U.S. operations will function under independent oversight.