WASHINGTON, D.C. Sept 20, 2025 — In a significant development following a phone call between President Donald Trump and Chinese President Xi Jinping on September 19, 2025, the U.S. and China have moved closer to finalizing a deal that would transfer control of TikTok’s U.S. operations to American investors, potentially averting a ban that threatened the app’s 170 million U.S. users. The agreement, announced by Trump, involves major U.S. companies such as Oracle and Walmart, aiming to address national security concerns raised by Congress in 2024.
White House Press Secretary Karoline Leavitt detailed the terms of the deal, stating that it would ensure six out of seven board seats controlling the app in the U.S. are held by Americans. Additionally, data and privacy will be managed by Oracle, and the algorithm will be controlled domestically, aligning with the “America First” policy. This structure is designed to mitigate fears that TikTok’s Chinese parent company, ByteDance, could access U.S. user data, a concern that prompted Congress to pass legislation mandating ByteDance’s divestiture or face a ban.
The deal’s framework was confirmed after high-level talks in Madrid, where U.S. and Chinese officials reached a consensus on transferring TikTok to U.S.-controlled ownership. The final confirmation is expected during a call between Trump and Xi Jinping, scheduled for Friday. This development occurs amidst broader U.S.-China tensions, including ongoing trade negotiations and discussions on curbing fentanyl precursors from China. Trump and Xi have also planned to meet at the Asia-Pacific Economic Cooperation summit in South Korea in late October, with reciprocal visits scheduled for 2026.
The TikTok ownership saga, which began in 2020 under Trump’s first administration, has seen multiple twists, including failed acquisition attempts by Microsoft and a joint proposal by Walmart and Oracle. The current deal involves a consortium of investors, including ByteDance’s existing shareholders like Susquehanna International Group, General Atlantic, and KKR, as well as new entrants like Andreessen Horowitz. ByteDance will retain a 19.9% stake, just below the 20% threshold, ensuring majority American control.
This agreement reflects a complex negotiation process that has seen several deadline extensions, with the latest extension granted just before the impending ban. The deal’s approval by the Republican-controlled Congress remains a critical hurdle, given the 2024 legislation’s mandate. However, the White House’s strategy aims to balance national security with maintaining access to a platform that has been credited with boosting Trump’s engagement with young voters during the last election.
As the U.S. and China navigate this pivotal moment, the TikTok deal underscores the broader geopolitical dynamics at play, with implications for technology, trade, and international relations.