Washington, D.C.: U.S. President Donald Trump confirmed on Sunday that Chinese President Xi Jinping has approved a landmark agreement concerning TikTok’s operations in the United States. The announcement marks a significant milestone in ongoing negotiations aimed at addressing national security concerns surrounding the popular social media platform, and potentially reshaping U.S.-China tech relations.
Under the terms of the proposed deal, ByteDance, TikTok’s Chinese parent company, will transfer its U.S. operations to American ownership. ByteDance will retain a minority stake, holding one of the seven board seats in the newly structured U.S. entity, while six board seats will be occupied by American investors. This arrangement is designed to ensure that decision-making authority and oversight remain firmly in U.S. hands.
To address persistent privacy and security concerns, the deal requires that all U.S. user data be stored on servers operated by Oracle, a leading American technology company. Additionally, TikTok’s algorithm will undergo retraining under American supervision to mitigate any potential influence from foreign entities. ByteDance’s stake in the joint venture will be limited to less than 20%, in line with U.S. legislative requirements.
President Trump highlighted the participation of several high-profile U.S. business leaders in the arrangement, including Lachlan Murdoch, CEO of Fox Corp; Larry Ellison, co-founder of Oracle; and Michael Dell, CEO of Dell Technologies. Trump described these figures as “prominent people” and “American patriots,” expressing confidence that their involvement would ensure TikTok’s U.S. operations are managed effectively and transparently.
The announcement follows extensive diplomatic engagement between Washington and Beijing. A framework agreement was initially reached during discussions in Madrid, with both countries emphasizing a “win-win” approach. President Trump and President Xi subsequently held a phone conversation to confirm mutual support and finalize details.
Looking ahead, both leaders are planning a face-to-face summit in South Korea next month. The meeting is expected to cover broader trade issues, technology governance, and geopolitical concerns, with TikTok serving as a high-profile case study of U.S.-China cooperation in digital commerce.
Despite the approval, the agreement remains subject to scrutiny from U.S. lawmakers concerned about national security implications. The 2024 legislation requiring ByteDance to divest its U.S. operations remains in force, and Congress may demand additional assurances regarding data security and algorithm transparency. Involvement of American tech giants like Oracle is viewed as a step toward compliance, but further legislative review is anticipated before the deal can be fully implemented.
Analysts view the TikTok agreement as a symbolic breakthrough in U.S.-China relations, demonstrating that compromise and collaboration are possible even amid tensions over technology, trade, and security. If successfully implemented, the deal could serve as a blueprint for future negotiations over other Chinese-owned digital platforms operating in the U.S., while reinforcing the principle of national oversight in critical technological infrastructure.