Washington: “China has formally approved the transfer agreement for TikTok’s U.S. operations, paving the way for a resolution to the months-long standoff over the App’s ownership,” U.S. Treasury Secretary Scott Bessent announced on Thursday. The move follows a high-profile meeting between U.S. President Donald Trump and Chinese leader Xi Jinping, that had extended beyond trade and technology.
Chinese Approval Marks Major Breakthrough
Speaking to Fox Business Network, Bessent said the approval came during talks in Kuala Lumpur, where the two sides finalized details of the TikTok deal. “We finalised the TikTok agreement in terms of getting Chinese approval and I would expect that would go forward in the coming weeks and months,” he said, adding that the agreement should bring “a resolution” to one of the most contentious tech disputes between Washington and Beijing.
China’s Commerce Ministry confirmed earlier on Thursday that it would “properly handle” TikTok-related issues with the United States, though TikTok’s parent company, Beijing-based ByteDance.
New U.S.-Based TikTok Entity
Under the approved deal, TikTok’s U.S. operations will be transferred to a newly established joint venture headquartered in the United States. The new entity will have majority American ownership, with ByteDance retaining less than a 20 percent stake and just one seat on a seven-member board. This structure complies with the 2024 U.S. law that required ByteDance to divest its American assets by January 2025 or face a nationwide ban of the app.
Moreover, U.S. technology firm Oracle will serve as TikTok’s data security provider, hosting all U.S. user data on a dedicated domestic cloud infrastructure to prevent foreign access. The agreement also mandates that TikTok’s content algorithm will be retrained and monitored by U.S.-based security partners to ensure transparency and independence from Chinese influence.
Trump’s Executive Order and Security Concerns
In September 2025, President Trump signed an executive order endorsing the divestiture plan and postponing enforcement of the 2024 law by 120 days to allow the transaction’s completion. He described the move as a “qualified solution” that aligns with U.S. national security objectives while preserving TikTok’s operations for its 170 million American users.
Broader Diplomatic Context
Thursday’s breakthrough came alongside other developments from the Trump–Xi summit. Bessent revealed that China also agreed to purchase 12 million metric tons of U.S. soybeans this year and at least 25 million annually through 2028, a concession aimed at easing trade frictions that have unsettled global markets.
As the deal advances, U.S. officials hope the new framework will not only safeguard national security but also set a precedent for how Washington manages technology governance in the face of global digital interdependence.
