Trump Confirms TikTok Deal: US and China Reach Agreement to Keep App in the US
Published: September 17, 2025
A major breakthrough has been reached in the long-running dispute over TikTok’s future in the United States. Former President Donald Trump announced that a deal between Washington and Beijing will allow the app to continue operating in the country, ending months of uncertainty over a potential ban.
Speaking to reporters before leaving the White House for a state visit to the United Kingdom, Trump said:
“We have a deal on TikTok. I’ve reached an agreement with China, and I’ll be speaking with President Xi on Friday to confirm everything.”
📌 What’s in the Deal?
According to details first reported by The Wall Street Journal, TikTok’s US operations will be placed under a new company controlled by American investors.
US investors are expected to hold about 80% ownership.
Oracle, along with private equity group Silver Lake and venture capital firm Andreessen Horowitz, will play a leading role.
The US government will appoint one board member to oversee compliance and security.
The arrangement ensures that TikTok’s data storage and servers remain inside the United States, addressing a key concern of American lawmakers.
📌 Algorithm Licensing
One of the most important aspects of the agreement involves TikTok’s recommendation algorithms—the secret ingredient behind the app’s success.
Under the deal, US users will transition to a new app version, which will use algorithms licensed from ByteDance. This allows TikTok to continue offering its unique personalized content feed, while giving the US more oversight on how data is managed.
📌 Timeline and Deadlines
The TikTok ban has been postponed multiple times since first being announced in January 2024. The latest extension sets the deadline to December 16, 2025, giving both sides time to finalize the new structure.
Earlier, CNBC reported that the deal should be fully completed within 30 to 45 days, combining both new and existing investors.
📌 Wider US-China Negotiations
This breakthrough comes as the United States and China continue trade discussions in Madrid. Chinese officials confirmed a framework agreement, but emphasized that no deal would harm the interests of Chinese companies.
Wang Jingtao, deputy head of China’s cyberspace administration, explained:
“According to our laws, we will carefully examine and approve matters involving TikTok, including technology export and licensing.”
📌 TikTok’s Legal Battle in the US
TikTok has faced significant pressure in recent years. In January 2025, the US Supreme Court upheld a law banning the app unless its Chinese parent company, ByteDance, sold its US division.
The US Department of Justice has repeatedly called TikTok a “national security threat”, citing risks that American user data could be accessed by the Chinese state. ByteDance has denied these claims, insisting its US operations run independently.
TikTok even faced a temporary blackout earlier this year, though the shutdown lasted less than 24 hours before the ban was delayed.
📌 What’s Next?
For now, TikTok remains online in the US, but the future of the app will depend on how smoothly the new deal is executed. If finalized, it could bring stability to millions of American creators and businesses who rely on the platform.
However, with deadlines repeatedly pushed back, many are still asking the question:
👉 Is this the end of TikTok’s battle for survival in the US, or just another pause in the fight?