The Trump administration indicated a deal could be finalized as soon as Thursday during President Trump’s visit to South Korea, where he will meet Chinese President Xi Jinping.
The deal involves transferring TikTok’s ownership from China’s ByteDance to a US-based group to allow the platform to continue operating in the US.
The big picture: Treasury Secretary Scott Bessent told CBS that the transaction would be consummated during the meeting in Korea.
This potential agreement comes after months of uncertainty about TikTok’s future in the US following congressional actions and a law signed by President Joe Biden banning TikTok unless it finds new ownership free of Chinese control.
The backstory: After the law’s January 2024 deadline, TikTok was briefly set to go dark but was kept running by a series of Trump executive orders extending the deadline for the deal despite unclear legal grounds.
The first executive order allowed time for a sale, followed by others in April, June, and September attempting to keep TikTok running while addressing national security concerns.
Earlier negotiations to spin off TikTok into a US-owned entity fell apart when China backed out after Trump announced tariffs.
The deal requires Chinese approval, creating uncertainty about the extent of any real change in control or data security.
U.S. concerns primarily revolve around TikTok’s recommendation algorithm, viewed as potentially vulnerable to manipulation by Chinese authorities, although no direct evidence of misuse has been provided.
Data security concerns remain the leading reason supporters cite for wanting a ban.