Summary
U.S. Treasury Secretary Scott Bessent announced that the U.S. and China have finalized a deal over the TikTok app, with an official announcement anticipated when President Trump meets Chinese President Xi Jinping in South Korea. The deal involves TikTok being spun into a new U.S.-owned company, with American investors controlling most of it.
Key Facts
- The U.S. and China reached a final agreement on TikTok, expected to be announced when President Trump and President Xi meet on Thursday in South Korea.
- Treasury Secretary Scott Bessent confirmed the deal's completion during an interview on CBS News' Face the Nation.
- Under the deal, TikTok will become a U.S. joint venture, with American investors like Oracle and Silver Lake Partners owning about 80%.
- ByteDance, TikTok’s parent company, will retain a 20% stake but won't have control over security decisions.
- The U.S. Congress requires TikTok to cut ties with ByteDance as part of the security measures.
- President Trump had delayed a TikTok ban to negotiate a deal, while President Joe Biden earlier set a 2025 deadline to resolve the issue.
- TikTok's algorithm, previously controlled by China, has been central to the discussions.
- The deal comes amid ongoing U.S.-China economic tensions, including tariffs imposed by both countries.
