The popular social media app TikTok has secured its future in the U.S. market, with the U.S. and China finalizing an agreement that will see the platform spun off into a new American-owned entity.
U.S. Treasury Secretary Scott Bessent announced the breakthrough while on President Donald Trump’s trip through Asia, stating that the deal has received Chinese approval.
“In Kuala Lumpur, we finalized the TikTok agreement in terms of getting Chinese approval,” Bessent said on FOX Business Network’s Mornings With Maria. “And I would expect that would go forward in the coming weeks and months, and we’ll finally see a resolution to that.”
The finalized agreement is designed to address mounting national security concerns in Washington by mandating that TikTok’s U.S. operations be divested from its Chinese parent company, ByteDance. The new deal will result in the creation of a separate U.S. entity for TikTok, majority-owned by American investors.
For years, lawmakers on both sides of the aisle had expressed deep fears that the video-sharing platform posed a national security risk due to its ties to China, specifically regarding the potential for data access and content manipulation.
This bipartisan opposition in Congress had led to a law that would have banned the app entirely had a divestiture not occurred.
Bessent’s announcement followed President Trump’s high-stakes meeting with Chinese President Xi Jinping, a discussion that also focused on efforts to de-escalate an ongoing trade war between the two economic superpowers.
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