Following years of controversy as to privacy and ownership between the United States and China, both US and Chinese officials stated on Tuesday that an agreement has been reached for an American TikTok spin-off to be sold to American investors, albeit under indecisive terms.
Per Reuters:
U.S. and Chinese officials said on Monday they have reached a framework agreement to switch short-video app TikTok to U.S.-controlled ownership that will be confirmed in a Friday call between U.S. President Donald Trump and Chinese President Xi Jinping.
China has said that the two sides have reached a “basic framework consensus.”
As such, the revised September 17 deadline looks as if it will be extended yet again to allow the deal to be finalized. The deal itself won’t be set in stone until Congress approves the terms.
According to the Financial Times, the agreement also includes licensing the Chinese algorithm that’s made TikTok so successful. Wang Jingtao, deputy head of China’s powerful cyber security regulator, told reporters on Monday night that US and Chinese officials had agreed on a framework that included “licensing the algorithm and other intellectual property rights”.
The algorithm itself provides the value to the app, wherein TikTok shows an infinite scrolling feed of videos it thinks you will like, quickly learning your tastes.
US Treasury Secretary Scott Bessent separately told reporters that the spun-off app would be controlled by American investors but preserve some “Chinese characteristics.”
A source close to the story stated that TikTok has been developing a standalone US app in anticipation of the deal. The developer was also eager to ensure that content generated by American users would still be available to users in the “rest of the world” app and vice versa.
It’s unknown who will end up owning the US app, and the claimed deal back in March failed to materialize. The deal involved several different US companies holding different percentages of the equity.
Stay tuned for additional details as they become available.
Via 9to5Mac, Reuters, and the Financial Times




