The conflict over TikTok began around 2019–2020, when the U.S. government under Donald Trump claimed the Chinese-owned app was a national security threat.
Officials argued that since TikTok’s parent company ByteDance is based in China, it could be forced under Chinese law to share U.S. user data with the Chinese government. To prevent this, Trump threatened to ban TikTok in the U.S. unless its American operations were sold to a U.S. company.
Although companies like Microsoft, Oracle, and Walmart showed interest, no deal was finalized, and the ban was delayed by courts and later by the Biden administration.
Under Joe Biden, the government still restricted TikTok on official devices and pushed for U.S. based data storage, but security concerns continued.
Now, in 2025, with Trump back in office, he is trying to finish the issue through a new deal with Chinese President Xi Jinping. The expected agreement would let TikTok keep operating in the U.S. but under majority American ownership, reducing ByteDance’s stake to a small minority, a move aimed at ending years of U.S.-China tension over data, technology, and control.
From Full Control to Shared Ownership
At first, TikTok was fully owned and legally controlled by ByteDance, its Chinese parent company.
Even though global investors like Sequoia Capital (U.S.), General Atlantic (U.S.), and SoftBank (Japan) already owned small financial stakes in ByteDance, all voting power, board control, and legal authority remained under Chinese management.
This structure caused serious national-security concerns in the U.S., since China’s laws could allow its government to request access to American user data or influence company decisions.
To prevent that, Washington demanded a new governance model that would move TikTok’s U.S. operations under American legal and regulatory control, while limiting Beijing’s influence.
Now, according to U.S. Treasury Secretary Scott Bessent, a new ownership deal is nearly complete.
Under this plan:
- 🇺🇸 65% will belong to U.S. and international investors such as Oracle, Silver Lake, and MGX.
- 🇨🇳 Less than 20% will stay with ByteDance, now as a non-controlling shareholder.
- ⚖️ Around 15% will go to TikTok’s employees and other global institutional investors.
Most importantly, the deal transfers voting and legal control to U.S.-based entities.
That means all decisions related to data storage, algorithm management, and board governance will now be made under American law, allowing TikTok to stay active in the U.S. while addressing the core security issues that began the entire dispute. conflict.
Possible Impacts if the TikTok Deal Happens
If the TikTok deal is signed, it would be more than just a business move; it would set a new global standard for how countries handle foreign tech companies.
A New Rulebook for Chinese Apps
The U.S. would show that Chinese companies can stay in Western markets only if they share ownership, move data locally, and follow local laws.
This model could soon affect Shein, Temu, and CapCut, which may need to open local offices, hire regional management, or even sell minority shares to Western investors.
A Shift in U.S.–China Tech Relations
Instead of banning each other’s apps, both nations might move toward controlled cooperation, allowing business ties but under tight supervision.
While this could reduce political tension in the short term, it might also create a new wave of “digital protectionism”, where every country demands that user data stay within its own borders.
Global Market Reaction
Investors would likely see the deal as a sign of stability in global tech markets.
Chinese tech stocks could rise slightly as the risk of bans fades, while U.S. firms like Oracle and Silver Lake would benefit from their new ownership stakes in TikTok.
Stronger Data Regulation
Governments, especially in the U.S. and the EU, could use this deal as proof that tech regulation works.
It may inspire tougher data-protection and transparency rules for all platforms, even American ones, to show how user information is handled.
The User Experience
For everyday users, TikTok would stay available in the U.S., but likely feel more localized more American content, clearer privacy policies, and less political debate about who controls the algorithm.
A New Chapter in the U.S.–China Tech Rivalry
If the Trump–Xi meeting ends with a signed deal, it could reshape the future of global tech relations.
The agreement would mark a new balance: TikTok stays active in the U.S., but under strict American legal and voting control.
Still, several questions remain:
- Will China approve the ownership and voting changes?
- How will U.S. lawmakers react to the final structure?
- Could this model become a template for other Chinese apps, such as Shein or Temu?
Whatever the outcome, the TikTok negotiations highlight how technology, politics, and global power are now tightly connected and this deal may become the first real test of that new digital balance.
References
- The Guardian – “US and China reach ‘final deal’ on TikTok sale, Treasury Secretary says.”
Published: 26 October 2025
https://www.theguardian.com/technology/2025/oct/26/us-china-tiktok-deal-scott-bessent - CBS News – “TikTok deal to be finalized Thursday, Treasury Secretary Scott Bessent says.”
Published: 26 October 2025
https://www.cbsnews.com/news/tiktok-deal-finalized-treasury-secretary-scott-bessent - Tech Times – “TikTok Deal: Trump, China’s Xi Set to Finalize Details Later This Week, Says US Treasury Secretary.”
Published: 27 October 2025
https://www.techtimes.com/articles/312365/20251027/tiktok-deal-trump-chinas-xi-set-finalize-details-later-this-week-says-us-treasury-secretary.htm - Anadolu Agency (AA) – “Trump says TikTok deal ‘might’ be finalized during Xi meeting.”
Published: 25 October 2025
https://www.aa.com.tr/en/asia-pacific/trump-says-tiktok-deal-might-be-finalized-during-xi-meeting/3727498 - RTÉ News (Ireland) – “Trade, Taiwan and TikTok to dominate Trump–Xi meeting amid rising tensions.”
Published: 25 October 2025
https://www.rte.ie/news/analysis-and-comment/2025/1025/1540462-trade-taiwan-and-tiktok-to-dominate-trump-xi-meeting - Times of India – “TikTok deal on table? Donald Trump hints at signing pact with China this week to meet Xi Jinping in Seoul.”
Published: 25 October 2025
https://timesofindia.indiatimes.com/technology/tech-news/tiktok-deal-on-table-donald-trump-hints-at-signing-pact-with-china-this-week-to-meet-xi-jinping-in-seoul/articleshow/124844281.cms - Built In – “U.S.–China TikTok Deal: What It Means for Global Investors.”
Published: October 2025
https://builtin.com/articles/us-china-tiktok-deal-trump - Reuters Archive – “U.S. and China reach framework agreement on TikTok ownership.”
Published: 15 September 2025
https://www.reuters.com/world/china/us-china-reach-framework-deal-tiktok-trump-xi-speak-friday-2025-09-15
(AI assisted post)
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