Final agreement between U.S. and China on TikTok highlights growing tech cooperation as broader trade talks show progress
A Deal Years in the Making
The U.S. and China have finalized a TikTok agreement that is set to be officially “consummated” by Presidents Donald Trump and Xi Jinping this Thursday in Korea. According to Treasury Secretary Scott Bessent, the deal builds on a framework reached last month in Madrid and now includes all finalized details.
- The finalization marks a key moment in the ongoing debate over TikTok’s ownership and national security concerns.
- Trump’s executive order pushed ByteDance to sell TikTok’s U.S. operations or face a ban.
What the TikTok Agreement Involves
Under the executive order, TikTok’s U.S. operations — including its algorithm, source code, and content moderation — will be transferred to a new U.S.-based entity.
- Oracle, led by Trump ally Larry Ellison, will oversee security operations.
- The new board of directors will include stakeholders from Oracle, Fox Corp, Andreessen Horowitz, and Silver Lake Management.
- Trump himself has confirmed Fox’s participation, strengthening the political and corporate coalition behind the deal.
High-Level Diplomacy and Broader Trade Talks
Bessent’s announcement from Kuala Lumpur coincided with the conclusion of a productive round of U.S.-China trade talks, which tackled key issues beyond TikTok.
- U.S. negotiator Jamieson Greer confirmed that discussions included rare-earth minerals, which are essential for semiconductors and other technologies.
- China has hinted at tightening controls on these exports, creating strategic pressure amid global tech rivalry.
A Sign of Thawing Relations?
The TikTok deal, combined with trade dialogue progress, signals a possible reset in U.S.-China tech diplomacy.
- While past tensions over data security and trade imbalances remain, the willingness to strike a deal on a high-profile tech platform may indicate a mutual desire to stabilize relations.
- Extending the tariff truce and addressing resource dependencies suggests both nations are pursuing long-term frameworks rather than short-term fixes.
What’s Next?
Presidents Trump and Xi are expected to finalize the TikTok agreement on Thursday during a bilateral meeting in Korea. While no further details of the deal have been disclosed, its completion may serve as a blueprint for future tech-related negotiations between the two superpowers.
