Full Breakdown
U.S.-China Finalizes TikTok Ownership Deal
10/26/2025, 7:44:31 PM
Core Event: Agreement on TikTok's U.S. Operations
The United States and China have reached a final agreement to transfer ownership of TikTok's U.S. operations to a consortium of American investors. Treasury Secretary Scott Bessent announced this development during an appearance on CBS’s *Face the Nation*, stating that the deal was finalized in Madrid and will be officially consummated during a meeting between President Donald Trump and Chinese President Xi Jinping in South Korea on Thursday.
Background & Context: Legislative Pressure and National Security Concerns
The negotiations surrounding TikTok's ownership have been driven by national security concerns regarding the app's Chinese ownership. In April 2024, Congress passed a bipartisan law mandating that TikTok's parent company, ByteDance, divest its U.S. operations or face a ban. This legislation was signed into law by then-President Joe Biden. Trump, upon returning to office in January 2025, extended deadlines for the divestment to facilitate negotiations.
Key Figures & Groups: Major Stakeholders in the Deal
Key figures in this agreement include President Donald Trump, Treasury Secretary Scott Bessent, and Chinese President Xi Jinping. The consortium of American investors reportedly includes notable figures such as Oracle co-founder Larry Ellison and Rupert Murdoch, among others. The deal is valued at approximately $14 billion, with U.S. and international investors expected to hold about 65% ownership, while ByteDance will retain less than 20%.
Official Statements & Responses: Government Perspectives
Bessent emphasized that his role was to secure Chinese approval for the transaction, stating, “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.” Trump’s executive order, titled “Saving TikTok While Protecting National Security,” outlines the framework for the deal, which aims to ensure that TikTok’s operations in the U.S. are governed under American law.
Criticism & Opposition: Concerns Over Chinese Involvement
Despite the deal's progress, some lawmakers remain skeptical. John Moolenaar, chairman of the House China committee, expressed concerns about ByteDance's continued involvement, stating, “As long as the Chinese are involved, I think there's reason for distrust.” He highlighted the potential risks associated with the Chinese Communist Party's influence over the company.
What's Next: Upcoming Meetings and Broader Trade Discussions
The meeting between Trump and Xi in South Korea is expected to address not only the TikTok deal but also broader trade issues, including agricultural purchases and tariffs. This meeting represents a significant moment in U.S.-China relations, as both leaders aim to navigate ongoing tensions and find common ground on trade practices.
Verbatim Quotes
- “We reached a final deal on TikTok.” — Scott Bessent, U.S. Treasury Secretary
- “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.” — Scott Bessent, U.S. Treasury Secretary
- “as long as the Chinese are involved, I think there's reason for distrust.” — John Moolenaar, Chairman of the House China Committee
This agreement marks a pivotal moment in the ongoing negotiations between the U.S. and China, reflecting both nations' efforts to address longstanding economic and security concerns.
