New TikTok owners: US, China reach new framework deal, but is it final?

Dubai: The U.S. and China have reached a framework deal to transfer TikTok’s U.S. operations from China’s ByteDance to U.S.-controlled ownership, U.S. Treasury Secretary Scott Bessent confirmed after high-level trade talks in Madrid. But is the deal final? What exactly does it entail?

While this announcement is a significant step forward, analysts warn that the deal is not yet complete, and several important details are still unresolved.

Framework, not a final deal

Officials from both nations described the agreement as a “basic framework consensus.” The next milestone is a scheduled discussion between President Donald Trump and Chinese Premier Xi Jinping, expected to finalize the transfer.

Experts note that trade hurdles or political tensions could still delay execution, but the framework lays the groundwork for a U.S.-based solution to the longstanding dispute.

Why US-China deal matters

The U.S. had raised concerns about ByteDance under national security laws, citing potential Chinese government access to sensitive data. TikTok’s proprietary algorithm, which determines what content users see, was another point of contention. By transferring ownership to a U.S. entity, the deal aims to secure user data while keeping the app operational in America.

How the transition would work

The commercial terms remain confidential. A U.S. partner—likely Oracle—is expected to manage TikTok’s U.S. user data. Intellectual property agreements will safeguard ByteDance’s algorithm and technology contributions while separating U.S. operations from Chinese control.

Part of a bigger picture

The TikTok deal is embedded in broader U.S.-China trade negotiations, which also cover tariffs, export controls, and technology restrictions. Analysts view the framework as a rare instance of cooperation in the tech sector and see it as a potential precursor to a Trump-Xi meeting at the Asia-Pacific Economic Cooperation (APEC) forum later this year.

What this means for TikTok users

• TikTok can continue operating in the U.S. without disruption.

• U.S. national security concerns are addressed through a trusted partner.

• The agreement provides a model for resolving cross-border tech disputes without escalating tensions.

In short, the framework exists, offering a clear pathway to U.S.-based ownership, but the deal is not yet fully executed. Users worldwide will be watching the upcoming Trump-Xi talks closely for final confirmation.