WASHINGTON — The United States and China have agreed in principle to a framework that would allow TikTok to continue operating in the U.S. under new ownership, American officials confirmed. The move, they said, would put TikTok’s U.S. business largely under American control, with Oracle managing data and Americans occupying six of the seven board seats. Yet disputes over the company’s algorithm and licensing of intellectual property remain unresolved.

The agreement follows a call between President Donald Trump and Chinese leader Xi Jinping on Friday, described by Mr. Trump as “productive.” He wrote on Truth Social that he “appreciated” Mr. Xi’s approval of the deal. Beijing’s messaging was more cautious. “China’s position on the TikTok issue is clear: The Chinese government respects the wishes of the company in question,” state media quoted officials as saying.

China Welcomes Negotiations, but Stresses Legal Safeguards

Chinese officials have insisted that any transfer of TikTok’s core technology must comply with Chinese export and licensing laws. “The Chinese government will, according to law, examine and approve relevant matters involving TikTok, such as the export of technology as well as the licensing of intellectual property,” said Wang Jingtao, deputy director of the Cyberspace Administration of China, during trade talks in Madrid.

China’s Ministry of Commerce described the framework as a “win-win solution” but added that Beijing would “review app’s technology and IP transfers” in accordance with national law. Li Chenggang, a senior Chinese trade negotiator, cautioned that Washington could not “on the one hand, ask China to accommodate its concerns, whilst at the same time continue to suppress Chinese companies.”

At a news conference, a Chinese spokesperson reiterated Beijing’s broader concerns: “We hope that the U.S. will provide an open, fair and non-discriminatory business environment for Chinese companies to invest in the United States.”

ByteDance Signals Compliance, But Uncertainty Remains

For its part, TikTok’s parent company ByteDance has publicly welcomed the negotiations. “ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US,” a company spokesperson said Friday, thanking both presidents “for their efforts to preserve TikTok in the United States.”

Yet whether ByteDance will agree to fully relinquish rights over TikTok’s algorithm remains unclear. The White House has insisted that U.S. officials will exercise “very tight control” over the app’s operations, including its powerful recommendation system, but Chinese officials have not publicly endorsed such an arrangement.

U.S. Pressure and Political Stakes

The tentative agreement comes amid legal deadlines: A 2024 law requires ByteDance to divest from TikTok’s U.S. operations or face a ban by the end of this year. The Supreme Court upheld the law in January, citing security risks over “immense depth and scale” of U.S. user data access. Mr. Trump, who once called for banning the app outright, has repeatedly extended compliance deadlines, most recently to December 16.

Skepticism persists in Washington, particularly among Republican lawmakers. “I am concerned the reported licensing deal may involve ongoing reliance by the new TikTok on a ByteDance algorithm that could allow continued CCP control or influence,” said Representative John Moolenar, chair of the House Select Committee on the Chinese Communist Party.

Despite the uncertainty, Mr. Trump has framed TikTok as having “tremendous value” for the U.S., calling the prospective investors “among the greatest in the world.” He has also signaled TikTok’s importance to his 2024 reelection campaign, underscoring the political stakes as the negotiations unfold.

What’s Next

Mr. Trump and Mr. Xi are expected to meet again at the Asia-Pacific Economic Cooperation summit in South Korea at the end of October, with plans for reciprocal visits in early 2026. In the meantime, negotiations over TikTok’s algorithm, intellectual property licensing, and regulatory oversight could determine whether the app survives in the U.S. in its current form. (zai)