{"id":13444,"date":"2025-09-17T12:04:39","date_gmt":"2025-09-17T12:04:39","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/09\/17\/what-is-us-china-tiktok-deal-and-can-it-secure-the-apps-future-in-america-explained-explainers-news\/"},"modified":"2025-09-17T12:04:39","modified_gmt":"2025-09-17T12:04:39","slug":"what-is-us-china-tiktok-deal-and-can-it-secure-the-apps-future-in-america-explained-explainers-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/17\/what-is-us-china-tiktok-deal-and-can-it-secure-the-apps-future-in-america-explained-explainers-news\/","title":{"rendered":"What Is US-China TikTok Deal And Can It Secure The App\u2019s Future In America? | Explained | Explainers News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9578557\">\n<p><span class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">Last Updated:<\/span><time class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">September 17, 2025, 16:42 IST<\/time><\/p>\n<h2 id=\"asubttl-9578557\" class=\"jsx-c9f81425ec968c48 jsx-447423706 asubttl-schema\">A new framework agreement has given TikTok a lifeline in the US, but questions over ownership and algorithm control mean the app\u2019s fate is still hanging in the balance<\/h2>\n<div class=\"jsx-c3a4b7af90a1cd78 artsharwrp\"><a href=\"https:\/\/news18.co\/gnps-en-btn\" target=\"_blank\" class=\"jsx-91f4da8d48c13a79 gglebtn bgprpl\"\/><\/p>\n<div id=\"artshare\" class=\"jsx-c3a4b7af90a1cd78 artshare\">\n<div class=\"jsx-c3a4b7af90a1cd78 stickdiv\">\n<div class=\"jsx-c3a4b7af90a1cd78 deskwrapstkdiv\">\n<div class=\"jsx-c3a4b7af90a1cd78 fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" title=\"font\" class=\"jsx-c3a4b7af90a1cd78 lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-c9f81425ec968c48 jsx-447423706 amimg\"><img decoding=\"async\" alt=\"Donald Trump signed an executive order granting extension to TikTok.\" title=\"Donald Trump signed an executive order granting extension to TikTok.\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-c9f81425ec968c48 jsx-447423706\"\/><\/p>\n<p>Donald Trump signed an executive order granting extension to TikTok.<\/p>\n<\/figure>\n<p id=\"0\" class=\"story_para_0\">TikTok\u2019s future in the United States has been hanging in the balance for years, but a fresh development has given the app a temporary reprieve. After trade talks in Madrid, US Treasury Secretary Scott Bessent confirmed that Washington and Beijing had reached a <a href=\"https:\/\/www.news18.com\/tech\/tiktok-us-launch-gets-closer-as-china-agrees-to-new-data-privacy-terms-with-trump-govt-ws-l-9575290.html\">basic framework agreement<\/a> to restructure the app\u2019s American operations. China\u2019s trade envoy Li Chenggang described the deal as part of wider economic cooperation.<\/p>\n<p id=\"1\" class=\"story_para_1\">The deal is meant to prevent a ban under a 2024 US law that requires TikTok\u2019s Chinese parent company, ByteDance, to divest the app\u2019s US arm or see it shut down. Both sides framed the agreement as a way to keep <a href=\"https:\/\/www.news18.com\/business\/tiktok-starts-hiring-in-india-amid-reports-of-comeback-ws-l-9537679.html\">TikTok accessible<\/a> for its 170 million American users, while addressing US concerns about data security and China\u2019s reluctance to hand over control of its prized technology.<\/p>\n<p id=\"2\" class=\"story_para_2\">The immediate threat of a ban has been <a href=\"https:\/\/www.news18.com\/world\/donald-trump-extends-tiktok-shutdown-deadline-us-december-16-tiktok-executive-order-us-china-deal-9577030.html\">pushed to 16 December 2025<\/a>, the fourth deadline extension by President Donald Trump.<\/p>\n<h2><strong>Why Did The US Move Against Tiktok In The First Place?<\/strong><\/h2>\n<p data-start=\"1638\" data-end=\"1854\">Since 2020, TikTok has been in Washington\u2019s crosshairs. Lawmakers and intelligence officials have repeatedly warned that the app could expose American user data to the Chinese government or be used to influence what people see online.<\/p>\n<p id=\"5\" class=\"story_para_5\">These fears led Congress to pass a law in 2024 requiring ByteDance to sell off TikTok\u2019s US arm. Earlier this year, the Supreme Court upheld the law, rejecting arguments that it violated free speech protections. The ruling made clear that TikTok can only remain in the US if it is separated from Chinese ownership.<\/p>\n<p id=\"6\" class=\"story_para_6\">Trump has chosen not to enforce the ban immediately, instead granting three extensions since January 2025, and now a fourth. Democratic lawmakers have argued he may not have the legal authority to do so. According to <em>AP<\/em>, Trump has no clear legal basis for repeatedly delaying the deadline.<\/p>\n<p id=\"7\" class=\"story_para_7\">Politics also complicates the picture: Trump himself has a \u201cwarm spot&#8221; for TikTok, with more than 15 million followers on the app, which he has credited for helping him connect with younger voters.<\/p>\n<h2><strong>What Does The New Framework Deal Propose?<\/strong><\/h2>\n<p data-start=\"2544\" data-end=\"2620\">The framework has three main elements, but the fine print remains unclear:<\/p>\n<ul class=\"listOncontentArticleUL\">\n<li data-start=\"2624\" data-end=\"3024\">American ownership: TikTok\u2019s US operations would be spun off into a new company majority-owned by American investors. <em>India Today reported<\/em> that likely participants include Oracle, which already manages TikTok\u2019s US user data, as well as private equity firms Silver Lake and Andreessen Horowitz. The aim is to place both management and board oversight firmly under American control.<\/li>\n<li data-start=\"3028\" data-end=\"3525\">China\u2019s consent: The biggest obstacle has always been TikTok\u2019s recommendation algorithm, the engine that powers its personalised feed. Beijing calls it its most valuable intellectual property and, in 2020, placed it under export control laws to stop it being sold abroad. In Madrid, Chinese cyberspace official Wang Jingtao said there was consensus on allowing the US entity to use TikTok\u2019s algorithm under licence, but ownership would remain with ByteDance.<\/li>\n<li data-start=\"3529\" data-end=\"3831\">Security arrangements: Both sides agreed that a US partner would oversee American user data and content moderation. Oracle is expected to expand its role here, building on an earlier arrangement where it hosted TikTok\u2019s data. The aim is to reassure Washington that data cannot be siphoned overseas.<\/li>\n<\/ul>\n<p data-start=\"3833\" data-end=\"4189\">US Treasury Secretary Bessent said that \u201ccommercial terms have been agreed,&#8221; but neither side revealed the ownership split, the structure of the board, or how licensing the algorithm would work in practice.<\/p>\n<h2><strong>Why Is The Algorithm The Sticking Point?<\/strong><\/h2>\n<p data-start=\"4247\" data-end=\"4438\">TikTok\u2019s recommendation algorithm is widely seen as its \u201csecret sauce.&#8221; It determines what users see and is credited for the app\u2019s massive popularity. Without it, TikTok would not be the same product.<\/p>\n<p id=\"14\" class=\"story_para_14\"><em>Reuters<\/em> reported that China has repeatedly refused to transfer the algorithm, citing it as sensitive intellectual property. Licensing is the only compromise Beijing is willing to make. <em>AP<\/em> noted that this would mean the US entity could run a licensed version of the algorithm, retrained on American data.<\/p>\n<p id=\"15\" class=\"story_para_15\">But in Washington, many see this as inadequate. The House Select Committee on China has insisted that \u201cthere can\u2019t be any shared algorithm with ByteDance.&#8221; Lawmakers argue that unless the algorithm is fully separated, TikTok could still be vulnerable to Chinese influence.<\/p>\n<h2><strong>Congressional Approval<\/strong><\/h2>\n<p data-start=\"5187\" data-end=\"5388\">Even if <a href=\"https:\/\/www.news18.com\/world\/trump-and-xi-to-speak-friday-as-us-china-put-framework-for-tiktok-deal-in-place-9573881.html\">Trump and Xi Jinping finalise the framework<\/a>, it must pass muster in Congress. A congressional aide told <em>Reuters<\/em> that lawmakers will scrutinise the deal to ensure it meets the 2024 law\u2019s divestment requirement.<\/p>\n<p id=\"18\" class=\"story_para_18\">Several lawmakers have already voiced scepticism. Senator Tom Cotton, the Republican chair of the Senate Intelligence Committee, said American investors must \u201ccut all ties with China.&#8221; Democratic voices, including Rep. Raja Krishnamoorthi, have also flagged concerns that the Chinese Communist Party could still access American data.<\/p>\n<p id=\"19\" class=\"story_para_19\">If Congress decides the deal does not amount to a full divestment, it could block the agreement. At that point, Trump would have limited options, as the Supreme Court has already upheld the law.<\/p>\n<h2><strong>Has A Similar Deal Been Attempted Before?<\/strong><\/h2>\n<p id=\"21\" class=\"story_para_21\">Yes. A previous attempt in April this year outlined a similar spin-off, but it collapsed when China withheld approval after Trump announced steep tariffs on Chinese goods. As per <em>Reuters,<\/em> TikTok\u2019s future is not just about national security; it is entangled in the broader US-China trade relationship.<\/p>\n<h2><strong>What Happens Next?<\/strong><\/h2>\n<p data-start=\"5793\" data-end=\"5974\">Trump has said he will discuss the final contours of the agreement with Jinping. Both sides now have until December 16 to resolve the sticking points:<\/p>\n<ul class=\"listOncontentArticleUL\">\n<li data-start=\"5978\" data-end=\"6057\">Will the US entity truly control the algorithm, or only use it under licence?<\/li>\n<li data-start=\"6060\" data-end=\"6112\">How much ownership, if any, will ByteDance retain?<\/li>\n<li data-start=\"6115\" data-end=\"6187\">What level of government oversight will exist over the new US company?<\/li>\n<\/ul>\n<p data-start=\"6189\" data-end=\"6371\">Until then, TikTok continues to operate in America without disruption.<\/p>\n<div class=\"jsx-95088aad1b3c53cd atawrap\">\n<div class=\"jsx-95088aad1b3c53cd atadetailwrp\">\n<div class=\"jsx-95088aad1b3c53cd ataname\"><span class=\"jsx-95088aad1b3c53cd atthumb\"><\/p>\n<figure class=\"jsx-95088aad1b3c53cd\"><img decoding=\"async\" alt=\"Karishma Jain\" title=\"Karishma Jain\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2023\/11\/karishma-jain-2023-11-fd14e93f60217db0c1c22b17ff8878ff.jpg?impolicy=website&amp;width=60&amp;height=60\" class=\"jsx-95088aad1b3c53cd\"\/><\/figure>\n<p><\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd attitle\"><a href=\"https:\/\/www.news18.com\/byline\/karishma-jain-24301.html\" class=\"jsx-95088aad1b3c53cd atamail\">Karishma Jain<\/a><\/p>\n<p>Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar&#8230;<span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<p>Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar&#8230;<!-- --> <span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-447423706 atbtlink fp\"><span>First Published:<\/span><\/p>\n<div class=\"rs\">\n<p>September 17, 2025, 16:39 IST<\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-447423706 brdcrmb\"><a href=\"https:\/\/www.news18.com\/\">News<\/a>  <a href=\"https:\/\/www.news18.com\/explainers\/\">explainers<\/a>  <span class=\"brdout\"> What Is US-China TikTok Deal And Can It Secure The App\u2019s Future In America? | Explained<\/span><\/div>\n<div id=\"coral-wrap\" class=\"jsx-ba4d8f086a12294f \">\n<div class=\"jsx-ba4d8f086a12294f coral-cont\">\n<div class=\"jsx-ba4d8f086a12294f coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-ba4d8f086a12294f\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-ba4d8f086a12294f\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-c9f81425ec968c48 jsx-447423706 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/explainers\/what-is-us-china-tiktok-deal-and-can-it-secure-the-apps-future-in-america-explained-ws-l-9578557.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:September 17, 2025, 16:42 IST A new framework agreement has given TikTok a lifeline in the US, but questions over ownership and algorithm control mean the app\u2019s fate is still hanging in the balance Donald Trump signed an executive order granting extension to TikTok. TikTok\u2019s future in the United States has been hanging in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":13445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":["post-13444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/13444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=13444"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/13444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/13445"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=13444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=13444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=13444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}