China Approves TikTok Transfer Deal, Paving Way for US Resolution

China Gives Green Light to TikTok Transfer Agreement

China has approved the transfer agreement for the popular short video application TikTok, a significant step towards resolving the app's long-standing future in the United States. The announcement was made by US Treasury Secretary Scott Bessent on Thursday, October 30, 2025, following a meeting between US President Donald Trump and Chinese leader Xi Jinping in Kuala Lumpur.

Secretary Bessent indicated that he anticipates the deal to progress 'in the coming weeks and months,' ultimately leading to a resolution for the platform, which serves approximately 170 million Americans.

Addressing National Security Concerns

The approval comes after more than 18 months of uncertainty surrounding TikTok's operations in the US, driven by national security concerns over its Chinese ownership by ByteDance. A 2024 US law had mandated that ByteDance sell TikTok's US assets by January 2025 or face a ban.

In a move to facilitate the resolution, President Trump signed an executive order on September 25, 2025, affirming that the proposed sale plan met the national security requirements outlined in the 2024 law. This order granted investors 120 days to finalize the transaction, delaying enforcement until January 20, 2026. The deal aims to mitigate fears that the Chinese government could access US user data or influence content through the app's algorithm.

Key Details of the Agreement

While full details are still emerging, reports suggest the transfer agreement includes several critical provisions:

• Ownership Structure: ByteDance is expected to retain less than a 20% stake in TikTok US, with US and international investors holding approximately 65% of the company.
• Board Representation: Americans are slated to occupy six of the seven board seats in the newly formed entity.
• Algorithm Oversight: The app's core recommendation algorithm, central to its functionality, will be retrained, monitored, and operated under US oversight. Oracle is anticipated to play a key role, licensing a copy of the algorithm and managing US user data.
• Valuation: The deal is estimated to be valued at $14 billion.

This structure is designed to ensure that US user data is stored domestically and that the platform's operations align with US national security interests.

Official Statements and Outlook

Secretary Bessent, who was sworn in as the 79th US Treasury Secretary on January 28, 2025, confirmed that a 'final deal' on TikTok had been reached, with all details ironed out. He stated that his mandate was to secure Chinese approval for the transaction, which he believes has been successfully accomplished.

On the Chinese side, the Commerce Ministry issued a statement confirming its commitment to 'properly handle' TikTok-related issues with the United States. A spokesperson further added that China would work with the US to address these matters appropriately.

This agreement marks a potential turning point in the complex geopolitical and technological dispute, offering a path for TikTok to continue its operations in the US under new ownership and oversight. The final consummation of the transaction is expected to occur during an upcoming meeting between President Trump and President Xi in Korea.