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Technology
17 September 2025

Trump And China Near TikTok Deal As Ban Looms

A tentative agreement could bring TikTok under American ownership, but deadline extensions, legal battles, and political divisions leave the app’s future uncertain for millions of U.S. users.

In a saga that has gripped both Capitol Hill and the millions of Americans glued to their phones, TikTok’s fate in the United States remains in flux, but a new framework deal between the U.S. and China could soon bring clarity. On September 16, 2025, the Trump administration announced it had reached a tentative agreement with Chinese officials on the future ownership of the wildly popular social video platform, potentially averting a ban that has loomed for over a year.

U.S. Treasury Secretary Scott Bessent, speaking to reporters after a round of trade talks in Madrid, confirmed that "the commercial terms have been agreed upon" for a deal that could see TikTok switch to American ownership. While Bessent declined to disclose the specifics, he noted that President Donald Trump and Chinese President Xi Jinping are scheduled to speak on Friday, September 19, to possibly finalize the arrangement. According to China’s official news agency Xinhua, both sides have achieved a "basic framework consensus" to resolve TikTok-related issues cooperatively and reduce investment barriers, a sentiment echoed by Li Chenggang, China’s international trade representative.

The deal, as outlined by Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, involves authorization of key intellectual property rights—including TikTok’s prized algorithm—and entrusting a partner to handle U.S. user data and content security. This last point addresses a central sticking point in the negotiations: how to keep American data out of foreign hands while preserving the app’s unique experience.

Oracle Corp. has emerged as a likely buyer, though the company has not commented publicly. Other bidders have included Amazon, the artificial intelligence startup Perplexity AI, billionaire Frank McCourt, and adtech firm AppLovin. Some proposals envision a coalition of U.S. investors taking a substantial stake to comply with the law, while others suggest a complete overhaul of TikTok’s infrastructure to guarantee domestic oversight and privacy protections.

Trump’s role in the TikTok drama has been nothing short of dramatic itself. During his first term, he spearheaded efforts to ban the app, calling it a threat to national security due to its Chinese ownership by ByteDance. But after returning to the White House, Trump reversed course, signing an executive order on his first day back in office to keep TikTok running. "We’re gonna watch the security concerns," Trump told reporters in August, but added, "We have buyers, American buyers, and until the complexity of things work out, we just extend a little bit longer." He’s since extended the deadline for TikTok to find a new owner multiple times, with the most recent extension pushing the ban back to September 17, 2025.

These repeated extensions have drawn criticism from some lawmakers, including Democratic Senator Mark Warner, vice chair of the Senate Intelligence Committee, who accused the administration of "flouting the law and ignoring its own national security findings about the risks" posed by a China-controlled TikTok. "An executive order can’t sidestep the law, but that’s exactly what the president is trying to do," Warner remarked. Yet, so far, no legal challenges have surfaced against Trump’s executive actions to keep TikTok alive, in stark contrast to other controversial orders from the administration.

Meanwhile, the courts have weighed in decisively. After TikTok and its parent company ByteDance challenged a federal law requiring divestiture, the Supreme Court ruled on January 17, 2025, that the law was constitutional. The court acknowledged TikTok’s "distinctive and expansive outlet for expression," but sided with Congress, stating that "divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary." The ruling left TikTok with little legal recourse, placing its future squarely in the hands of political negotiators.

For TikTok’s 170 million U.S. users, the uncertainty has been nerve-wracking. On January 19, 2025, the app briefly went dark after the original divest-or-ban deadline passed, only to return within 24 hours following Trump’s executive order pausing enforcement for 75 days. The app reappeared on Apple and Google’s app stores on February 13, 2025. Tech giants Apple, Google, and Oracle have continued to support TikTok, persuaded by assurances from the administration that the Department of Justice would not pursue fines against them while negotiations continue.

The drawn-out process has left creators, small businesses, and advertisers scrambling. TikTok Shop merchants prepared for "doomsday" scenarios, some pausing U.S. warehouse shipments or pivoting to other markets like Mexico. Advertisers shifted budgets to Instagram Reels and YouTube Shorts, while influencer marketers reassured brands that sponsored content would find a home elsewhere if needed. "Losing the majority of my audience is a difficult reality to face, and while I’m doing everything I can to prepare, it’s hard not to feel like I’m starting over," creator Sofia Bella told Business Insider.

Despite the turmoil, TikTok’s popularity has only grown. Trump himself has amassed more than 15 million followers on the platform, crediting it with helping him connect with young voters. The White House even launched its own official TikTok account on August 19, 2025, a move that would have been unthinkable just a year prior.

Public opinion on the matter is deeply divided. A Pew Research Center survey from July and August 2025 found that about one-third of Americans support a TikTok ban, down sharply from 50% in March 2023. Roughly a third oppose a ban, with the remainder unsure. Among supporters of a ban, data security remains the overriding concern, with 8 in 10 citing it as a major factor. But the drop in support for a ban suggests that, for many Americans, TikTok has become too embedded in daily life to lose without a fight.

As the U.S. and China inch closer to a final agreement, questions remain about how a new, American-owned TikTok would operate. Will it retain its global reach? Will ByteDance’s algorithms stay in play? And will this saga finally reach a resolution, or will the political Groundhog Day continue? As Forrester analyst Kelsey Chickering put it, "TikTok’s behavior also indicates they’re confident in their future, as they rolled out new AI video tools at Cannes this week." For now, TikTok’s hundreds of millions of users—and a host of would-be buyers—wait for the next chapter in this global story.

Whether TikTok’s future is ultimately decided by dealmakers, lawmakers, or the courts, one thing is certain: the platform’s influence on American culture and politics isn’t fading anytime soon.