The United States and China have reached a major strike agreement allowing TikTok to continue operations in the US, President Donald Trump announced on Tuesday. The deal comes just before a deadline requiring ByteDance, TikTok’s Chinese owner, to sell or shut down the platform.
Under the agreement, TikTok’s US assets will be transferred to American ownership. Trump said “a group of very big companies” will take over, though specific buyers were not named. Sources indicate the deal closely matches terms discussed earlier this year. The White House also extended the divestiture deadline to December 16, giving ByteDance 90 more days to complete the transfer.
The proposed strike framework allows ByteDance to keep a 19.9% stake, while a US-led consortium will hold 80% ownership. Investors are expected to include current shareholders such as Susquehanna International Group, General Atlantic, and KKR, along with new backers including Andreessen Horowitz, Oracle, and Silver Lake. Oracle will maintain its cloud partnership with TikTok.
The new US entity will have an American-dominated board, with one member designated by the US government—a structure similar to the Nippon Steel–U.S. Steel model. The agreement aligns with a 2024 law requiring TikTok’s divestiture due to national security concerns, including fears Beijing could access American user data or influence political campaigns.
Negotiations over TikTok were delayed earlier this year due to US-China trade tensions and new tariffs, but the strike deal shows both sides are separating trade disputes from the app’s future. US Treasury Secretary Scott Bessent noted that the commercial terms had been “essentially done since March,” with only technical details remaining. The deal could close within 30 to 45 days.
Trump has highlighted TikTok’s role in his political strategy, using the platform to connect with followers. Lawmakers still need to approve the arrangement, but the strike agreement ensures TikTok will continue serving its 170 million American users while addressing security concerns.
In other news read more about: U.S. and China Strike Tentative Trade Truce Framework in London
