Donald Trump has reached an agreement with China concerning the future of TikTok, as confirmed by Treasury Secretary Scott Bessent.
A new ownership framework for the popular short-form video-sharing platform in the United States has been established, according to Bessent.
This development follows Trump’s meeting with Chinese President Xi Jinping during a brief tour of Asia, which included visits to countries such as South Korea, Malaysia, and Japan.
In an interview with Fox Business Network’s Mornings with Maria, Bessent stated: “In Kuala Lumpur, we finalised the TikTok agreement in terms of getting Chinese approval, and I would expect that would go forward in the coming weeks and months, and we’ll finally see a resolution to that.”
Bessent did not divulge further specifics regarding the agreement.
However, reports suggest that the deal is valued at approximately $14 billion, according to the Guardian.
It is noted that US and international investors will own about 65 percent of the US TikTok subsidiary, while parent company ByteDance and other Chinese investors will maintain a stake of less than 20 percent.
An executive order signed by Trump has given the deal a 120-day timeframe for completion, as reported by Al Jazeera.
Significant US investors are said to include former media mogul Rupert Murdoch and Oracle’s Larry Ellison.
The board of the new company will consist of seven members, with six appointed by US investors.
There is speculation that Trump’s 19-year-old son, Barron Trump, could be a candidate for a board position, according to Jack Advent, a former Trump social media producer.
The algorithm, which is the core technology of TikTok, will be managed and retrained under the supervision of US partners.
US security partners will oversee it, with operational control being shifted to the new joint venture rather than ByteDance.
China has given its preliminary approval to the agreement, with its Commerce Ministry expressing its willingness to ‘work with the US to properly handle TikTok-related issues’.
Trump’s executive order indicates that the deal satisfies US national security requirements under a 2024 law.
Enforcement of this law, which led to the app being banned for 24 hours in the US earlier this year, has been postponed until January 20, 2026, to allow for a smooth transition. Nonetheless, questions remain regarding the specifics of ownership, governance, and the extent of ByteDance’s involvement.
For now, it appears that TikTok will continue to operate in the US, though the potential impact of the new US board on the app’s operations remains uncertain.
There are still obstacles to overcome, and only time will reveal the app’s ultimate destiny.