Washington D.C.- After years of political wrangling and looming bans, TikTok’s future in the United States may finally be secure.
The Trump administration announced Monday that it has reached a framework deal with China to keep the video-sharing app operational, ending months of uncertainty for its 170 million American users
A High-Stakes Agreement with Beijing
U.S. Treasury Secretary Scott Bessent confirmed the breakthrough during trade talks in Madrid, noting that President Donald Trump personally shaped the negotiations.
The deal sets the stage for a phone call between Trump and Chinese President Xi Jinping on Friday, a prelude to a potential in-person meeting later this fall.
“Without his leadership and the leverage he provides, we would not have been able to close the deal today,” Bessent said. U.S. Trade Representative Jamieson Greer added that the agreement ensures “national security comes first,” while also respecting China’s interests.
The Biden-era law banning TikTok in the U.S. — the Foreign Adversary Controlled Applications Act — gave ByteDance, TikTok’s Beijing-based parent company, an ultimatum: divest its American business or face a nationwide ban. Trump repeatedly extended deadlines for enforcement, most recently pushing the cutoff to September 17. Monday’s deal now appears to have saved the app from going dark for good.
Who Will Own TikTok’s U.S. Business?
While the administration stopped short of naming the buyer, speculation centers on Oracle’s Larry Ellison. The billionaire, who briefly surpassed Elon Musk as the world’s richest man, has long been linked to TikTok’s U.S. operations.
Oracle already manages TikTok’s American data, and Ellison was once tapped during Trump’s first term to lead a purchase deal that ultimately fell through.
Other contenders, including former Los Angeles Dodgers owner Frank McCourt and “Shark Tank” investor Kevin O’Leary, have floated bids.
Their proposals, however, excluded TikTok’s prized algorithm — the engine behind its addictive feed — making them unlikely winners. Analysts argue Ellison’s deep pockets and established ties give him the strongest edge.
The final ownership structure remains unclear. Trump previously pushed for a 50-50 joint venture between ByteDance and an American-led group, though whether Chinese ownership will be permitted under U.S. law is still up for debate.
Politics, Trade, and the Power of Youth Voters
TikTok’s survival carries implications far beyond Silicon Valley. The app briefly went offline in January when the ban law took effect, only to be revived by Trump’s executive order on his first day of his second term.
His decision to extend TikTok’s lifeline has been widely interpreted as political calculus: the platform’s youthful base overwhelmingly backed him in the 2024 election, a shift that helped propel him back into the White House.
The negotiations also unfolded against a broader backdrop of strained U.S.–China relations. On the same day the TikTok framework was announced, Beijing accused Nvidia of antitrust violations, underscoring the tense trade climate.
Still, officials on both sides suggested the deal could pave the way for smoother dialogue — including a long-awaited Trump–Xi summit in Asia this October.
In a post on Truth Social, Trump hinted at the breakthrough with characteristic flourish: “A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy!”
The Bigger Picture
TikTok’s reprieve marks a major turning point in the ongoing tug-of-war between national security concerns and the cultural clout of one of the world’s most popular apps.
For Trump, it’s a political win that shores up both his trade credentials and his support among younger voters. For China, it’s a signal that compromise is possible even amid escalating tensions.
The details of ownership will determine how lasting this peace is. But for now, America’s TikTok creators and its massive audience can breathe a sigh of relief: the app isn’t going anywhere.
