In a move that could reshape the future of one of the world’s most influential social media platforms, the United States and China are inching closer to a landmark deal over TikTok’s U.S. operations. On September 22, 2025, the White House announced that an emerging agreement would ensure American control over the app’s powerful recommendation algorithm and place a majority of Americans on a new board overseeing its U.S. business. This development comes after months of tense negotiations, legislative threats, and international scrutiny over the app’s ownership and data security.
According to CommonWealth Magazine and the Associated Press, the White House detailed that U.S. companies would have direct control of the algorithm that determines what TikTok’s 170 million American users see in their video feeds. Of the seven board seats in the newly structured U.S. entity, six will be held by Americans, with only one reserved for China’s ByteDance, the app’s parent company. Tech giant Oracle will be responsible for TikTok’s data and security, storing all U.S. user data exclusively on its cloud infrastructure to prevent Chinese access.
The path to this deal has been anything but smooth. In 2024, Congress passed a law requiring TikTok to be sold by ByteDance or face a complete U.S. shutdown by January 2025, citing concerns that the Chinese government could exploit TikTok to access American user data or influence the platform’s content recommendations. President Donald Trump, however, has repeatedly signed executive orders allowing TikTok to continue operating while negotiations proceeded, seeking a solution that would satisfy national security concerns without alienating the app’s massive American user base.
Trump’s personal involvement in the negotiations has been substantial. As reported by thestarmy and Reuters, Trump recently stated that he and Chinese President Xi Jinping made progress on the TikTok agreement during a phone call and plan to meet face-to-face in South Korea in six weeks. The agenda for that meeting will reportedly include not just TikTok, but also broader issues such as trade, illicit drugs, and Russia’s ongoing war in Ukraine. Trump’s administration has also extended the deadline for TikTok’s divestiture to mid-December, and a senior White House official confirmed that a further 120-day pause on enforcement is likely, potentially pushing the final deadline into April 2025.
The proposed board overseeing TikTok’s U.S. operations will include high-profile American investors. Media mogul Lachlan Murdoch, Oracle co-founder Larry Ellison, and tech entrepreneur Michael Dell are among those involved, according to President Trump. This board will be tasked not only with corporate oversight but also with ensuring that TikTok’s U.S. operations comply with national security and cybersecurity standards.
Perhaps the most significant—and contentious—aspect of the deal centers on TikTok’s recommendation algorithm. This algorithm is the secret sauce behind the app’s addictive video feed, and its control has been at the heart of Washington’s concerns. The White House has insisted that the algorithm will be rebuilt and operated in the United States, using only American data and under strict U.S. supervision. While earlier reports suggested that ByteDance might license the algorithm to the U.S. entity, current negotiations aim for a system that remains fully under American oversight. This arrangement is designed to address fears that China could manipulate what Americans see on TikTok, potentially influencing public opinion or even political outcomes.
ByteDance’s role in the new arrangement will be sharply reduced. The company’s stake in the U.S. entity will fall to less than 20%, and its influence on the board will be limited to a single seat. However, ByteDance’s investors—including Susquehanna International Group, General Atlantic, and KKR—are expected to remain involved, ensuring that some financial ties to China persist. For Beijing, ceding even partial control of one of its most successful tech exports is a delicate matter, and Chinese officials have so far offered little public comment on the deal. Analysts say that how China ultimately responds could determine whether the agreement holds.
Despite the progress, the deal faces continued skepticism in Washington. Lawmakers remain divided over whether the arrangement satisfies the 2024 law’s requirement for a complete divestiture from ByteDance. Representative Frank Pallone, a Democrat, has been among those voicing concerns. He stated, “Congress will scrutinize the arrangement closely to ensure it does not compromise U.S. data security or political independence.” Some members of Congress worry that even a reduced ByteDance stake could allow China to maintain indirect influence over the platform.
For President Trump, TikTok is more than just a national security issue—it’s a political tool. As noted by CommonWealth Magazine and other outlets, Trump credits the platform with helping him during his 2024 re-election campaign, where he built a following of over 15 million users. The White House even launched an official TikTok account last month, underscoring the app’s importance as a channel for reaching voters and shaping public discourse. Trump’s efforts to preserve TikTok under new ownership reflect both the platform’s cultural significance and its growing role in American politics.
At the heart of the deal is a commitment to data security. The White House emphasized that Oracle’s exclusive management of U.S. user data will prevent Chinese access, a concern that has dogged TikTok for years. The new U.S.-based entity will be majority-owned by American investors and managed by a board with expertise in national security and cybersecurity, ensuring compliance with government expectations. The deal also preserves TikTok’s international flavor; American users will still be able to access global content, keeping the app’s worldwide community intact.
As the world watches, the fate of TikTok in the United States remains uncertain. The agreement, if finalized, would mark a rare instance of cooperation between Washington and Beijing amid an era of escalating trade disputes and technological rivalry. Yet, hurdles remain. Congress will want to ensure the arrangement truly matches the intent of the 2024 law, and Beijing’s final approval is far from guaranteed. For now, TikTok’s 170 million American users can keep scrolling—at least until the next deadline looms.
