China Clears TikTok Deal, Paving Way for US Ownership

Beijing has officially approved the transfer agreement for TikTok, marking a major breakthrough in the long-running standoff over the app’s US operations. The announcement came from US Treasury Secretary Scott Bessent, who confirmed that China’s nod clears a key hurdle in finalizing the deal.

Speaking to Fox Business in Kuala Lumpur, Bessent said the agreement was finalized following President Donald Trump’s recent meeting with Chinese President Xi Jinping. “I would expect that would go forward in the coming weeks and months, and we’ll finally see a resolution to that,” he said.

China’s Commerce Ministry also confirmed the move, stating that the country will “properly handle” TikTok-related issues with the United States. The statement signals rare alignment between Washington and Beijing on a tech issue that has strained relations for years.

TikTok, owned by Beijing-based ByteDance, has faced intense scrutiny in the US over data privacy and national security concerns. The app, used by more than 170 million Americans, has been at the center of debate since Congress passed a law in 2024 ordering ByteDance to sell TikTok’s US assets by January 2025.

According to Reuters, President Trump signed an executive order on September 25 approving the sale plan, which meets the law’s national security requirements. The order gives investors 120 days to complete the transaction, pushing the enforcement deadline to January 20, 2026.

Under the deal, ByteDance will retain less than a 20% stake in the new US-based TikTok entity. Americans will hold six of the seven board seats, ensuring domestic oversight. Meanwhile, TikTok’s core algorithm — its closely guarded secret — will be retrained and monitored within the United States to meet security standards.

The approval marks a significant turning point for the popular app, which has navigated months of political pressure, legal hurdles, and public uncertainty. With both nations signaling cooperation, TikTok’s future in the US may finally be moving toward stability after years of uncertainty.