The much-anticipated TikTok deal between the United States and China is close to completion but not yet fully finalized. On September 25, 2025, President Donald Trump signed an executive order that paves the way to transfer majority ownership of TikTok’s U.S. operations to a consortium of American investors, marking a significant procedural advancement in this long-running saga.
Background and Context
TikTok, owned by Chinese company ByteDance, has faced intense scrutiny in the U.S. for concerns about data privacy and potential access to American user data by the Chinese government. Since 2020, successive U.S. administrations have pushed for ByteDance to divest its U.S. operations or face a ban. The current 2024 law mandates that ByteDance must relinquish approximately 80% ownership of TikTok’s U.S. assets to non-Chinese investors, or the app would be banned from U.S. app stores.
The Deal Framework and Stakeholders
The framework agreement outlines that TikTok U.S. operations will be managed by a newly created entity mainly owned (around 80%) by American investors, including technology and private equity firms Oracle, Silver Lake, and Andreessen Horowitz (a16z). ByteDance will retain less than 20% ownership, and the company’s board will predominantly consist of U.S. members, including one appointed by the U.S. government. Importantly, Oracle is expected to oversee user data management from secure data centers in Texas to address data security concerns.
President Trump highlighted during the signing that Chinese President Xi Jinping had given his approval for the deal after a recent phone conversation, calling it a positive step forward. “I had a very good talk with President Xi… we talked TikTok, he gave the go-ahead,” Trump stated.
Current Status and Remaining Challenges
Although the executive order signals strong U.S. government support, the deal still requires regulatory approvals from both the U.S. and China before it can be finalized, likely within the next 30 to 45 days. ByteDance has not publicly confirmed the deal, and Chinese state media have remained notably quiet, indicating that Beijing still holds significant influence over the final outcome.
A key sticking point that delayed previous efforts was the fate of TikTok’s recommendation algorithm, deemed one of the company’s most valuable assets. Due to Chinese export control laws covering technological transfers, negotiations around the algorithm’s handling continue to be sensitive.
For TikTok users, there could be changes ahead. The deal reportedly includes shifting current U.S. users to a new app version that TikTok has developed and is testing, ensuring compliance with the new ownership and security arrangements.
Real-Life Impact and Expert Opinions
Millions of U.S. TikTok users and content creators await clarity, as potential bans or disruptions could affect livelihoods and cultural trends. Angelo Zino, senior vice president at CFRA Research, noted the deal could dramatically increase TikTok’s valuation in the U.S. given the app’s immense popularity, estimating values possibly soaring beyond $60 billion if successfully executed.
Chinese state media described the proposed agreement as a “win-win” outcome based on “mutual respect, peaceful coexistence, and win-win cooperation,” framing it as a diplomatic success alongside commercial compromise.
What’s Next?
The upcoming weeks will be critical as regulatory reviews and bilateral consultations continue. Key steps include finalizing details on data security, ownership structure, and operational control. Should the deal fully conclude, it would allow TikTok to continue operating in the U.S., preserving access to millions of users and easing geopolitical tech tensions—for now.
Readers interested in this developing story should watch for announcements from both governments, official statements from ByteDance, and updates on any regulatory or congressional actions that could influence the final status. The TikTok deal remains a pivotal case study at the intersection of technology, national security, and global diplomacy.
