All You Need To Know About TikTok, Its Algorithm, And US-China Deal
A central question to TikTok's potential shutdown saga has been whether the popular social video platform would keep its algorithm - the secret sauce that powers its addictive video feed - after it's divested from Chinese parent company ByteDance.
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Donald Trump has officially extended the deadline allowing TikTok to remain operational in the United States
A key issue in the TikTok potential ban controversy has been whether the wildly popular video-sharing platform would retain its algorithm - the proprietary technology that drives its highly addictive video recommendations - following divestiture from its Chinese parent company ByteDance.
It now seems this will be possible. Wang Jingtao, deputy director of China's Central Cyberspace Affairs Commission, informed reporters in Madrid on Monday that consensus had been reached regarding authorization for "the use of intellectual property rights such as (TikTok's) algorithm" - which had been a major obstacle in negotiations.
The parties also agreed on appointing a partner to manage U.S. user data and content security concerns, according to Wang. However, while China has consented to allowing a divested TikTok to utilize its algorithm, the practical implementation remains unclear.
Details about the actual agreement in development are scarce, including which companies are involved and whether the United States would hold a stake in TikTok. Li Chenggang, China's international trade representative, stated that the two sides have achieved "basic framework consensus" to appropriately resolve TikTok-related issues cooperatively, reduce investment barriers, and enhance related economic and trade collaboration. Following the Trump administration's latest deadline extension, the parties now have until December 16 to finalize details.
U.S. Treasury Secretary Scott Bessent announced during a press conference this week, after the latest round of trade discussions between the world's two largest economies concluded in Madrid, that U.S. President Donald Trump and Chinese President Xi Jinping would speak Friday to potentially finalize the agreement. He indicated that the deal's objective would be to transition to American ownership.
Bessent did not reveal the agreement terms, explaining that it involves two private parties, but added that "the commercial terms have been agreed upon."
Oracle Corp. has been mentioned as a likely acquirer for the platform. Company representatives did not immediately respond to requests for comment on Monday and Tuesday.
In Madrid, U.S. Trade Representative Jamieson Greer stated that the team was "very focused on TikTok and making sure that it was a deal that is fair for the Chinese," while also "completely respects U.S. national security concerns."
The parties also agreed on appointing a partner to manage U.S. user data and content security concerns, he confirmed.
During Supreme Court arguments in January, a lawyer representing TikTok and ByteDance Ltd. explained to justices the significant challenges in completing a deal compliant with the TikTok legislation, particularly since Chinese law restricts the sale of the proprietary algorithm that has made the social media platform tremendously successful.
American officials have previously cautioned that the algorithm determining what users see on the app is susceptible to manipulation by Chinese authorities, who could potentially shape content on the platform in ways difficult to detect.
TikTok has maintained that the U.S. has never presented evidence that China has attempted to manipulate content on its American platform
The House Select Committee on China insists that any agreement between Beijing and Washington must comply with legislation requiring TikTok to be divested from Chinese ownership or face a U.S. ban.
"It wouldn't be in compliance if the algorithm is Chinese. There can't be any shared algorithm with ByteDance," a committee spokesperson stated.
Rep. Raja Krishnamoorthi, the committee's ranking Democrat, expressed interest in learning about the ownership structure.
"Underpinning all of our concerns is the Chinese Communist Party's access to American data," he explained. The platform requires user data to determine content recommendations, and Krishnamoorthi indicated openness to discussions if the app can be protected from Beijing's influence.
Though lacking clear legal authority, Trump has repeatedly extended the deadline for TikTok to avoid a U.S. ban. The most recent extension came Tuesday, one day before the previous deadline was set to expire.
This extension provides his administration additional time to negotiate a deal transferring the social media platform to American ownership.
It remains uncertain how many times Trump can continue extending the ban while the government attempts to negotiate a TikTok deal. Despite the lack of clear legal basis for these extensions, there have been no legal challenges against the administration thus far. Trump has accumulated over 15 million TikTok followers since joining last year and has credited the trendsetting platform with helping him connect with younger voters. In January, he acknowledged having a "warm spot for TikTok."
TikTok did not immediately respond to requests for comment on Tuesday.
For now, TikTok continues operating for its 170 million U.S. users. Tech giants Apple, Google, and Oracle have been persuaded to continue offering and supporting the app, with assurances that Trump's Justice Department would not pursue potentially substantial fines against them.
Americans are even more divided about TikTok's fate than they were two years ago.
A recent Pew Research Center survey revealed that approximately one-third of Americans support a TikTok ban, down from 50% in March 2023. Roughly one-third oppose a ban, with a similar percentage undecided.
Among those supporting a ban, about 80% cited concerns over users' data security as a major factor influencing their decision, according to the report.