US Says Deal Has Been Reached On TikTok, But Details Are Sparse
A framework deal has been reached for the ownership of popular social video platform TikTok, US Treasury Secretary Scott Bessent said after weekend trade talks between the US and China in Spain.
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- From: India News Bull
U.S. Treasury Secretary Scott Bessent announced that a framework agreement has been reached regarding the ownership of TikTok, the widely popular social video platform, following weekend trade discussions between the United States and China in Spain.
After the conclusion of the latest round of trade negotiations in Madrid between the world's two largest economies, Bessent revealed that U.S. President Donald Trump and Chinese Premier Xi Jinping are scheduled to speak on Friday to potentially finalize the agreement.
Bessent clarified that the framework deal aims to transition TikTok to American ownership. He stated that Trump and Xi would communicate on Friday to complete the arrangement.
"The commercial terms of the deal will remain private," Bessent explained. "This is an agreement between two private entities. However, the commercial terms have been mutually agreed upon."
Chinese officials have not yet provided confirmation of Bessent's announcement and were absent from the press conference.
The Madrid meeting marks the fourth round of trade discussions between U.S. and Chinese officials since Trump initiated a tariff campaign against Chinese goods in April. The two administrations are now planning for a potential summit between Trump and Xi, though no official confirmation has been made. Analysts caution that trade complications could potentially delay this meeting.
During the Democratic presidency of Joe Biden, both Congress and the White House invoked national security concerns to authorize a U.S. ban on TikTok unless ByteDance, its parent company, divested its controlling interest.
Trump has consistently extended the deadline for TikTok's shutdown, despite the legislation permitting just one 90-day extension, and only if a deal is being negotiated with formal Congressional notification. The current extension ends September 17, two days before Trump and Xi are scheduled to discuss the final aspects of the framework agreement. While Trump hasn't directly addressed the approaching deadline, he has suggested he can indefinitely postpone the ban.
TikTok represents one of over 100 applications developed during the past decade by ByteDance, a technology company founded in 2012 by Chinese entrepreneur Zhang Yiming with headquarters in Beijing's northwestern Haidian district.
ByteDance launched Douyin, a short-form video platform, in China in 2016, followed by TikTok as its international version. The company subsequently acquired Musical.ly, a lip-syncing platform popular among teenagers in the U.S. and Europe, merging it with TikTok while maintaining Douyin as a separate application.
Shortly thereafter, the application experienced explosive popularity in the United States and numerous other countries, becoming the first Chinese platform to significantly penetrate Western markets. Unlike other social media platforms that emphasized user connections, TikTok focused on delivering content tailored to individual interests.
The often humorous videos and music clips shared by content creators established TikTok as a positive space on the internet where users could find entertainment and authenticity. Building an audience on the platform helped launch the careers of musical artists such as Lil Nas X.
TikTok gained further momentum during COVID-19 lockdowns, when viral short dances became a staple of the application. In response to this competition, Instagram and YouTube eventually developed their own short-form video tools, known as Reels and Shorts respectively. By that time, TikTok had already become an undeniable success.
Alongside TikTok's rise came significant challenges. U.S. officials expressed concerns about the company's Chinese origins and ownership structure, citing laws in China that require Chinese companies to provide data when requested by the government. The proprietary algorithm determining user content feeds became another point of concern.