US-China Framework Deal for TikTok Reaches 80% US Investor Ownership Amidst Allegations of Continued CCP Influence

US and Chinese officials have announced a framework agreement to restructure TikTok's ownership, with a consortium of American investors set to acquire approximately 80% of the popular video-sharing app's U.S. operations. The deal, confirmed by US Treasury Secretary Scott Bessent and Chinese trade negotiator Li Chenggang following negotiations in Madrid, aims to resolve long-standing national security concerns. However, critics like political commentator Matthew Yglesias have voiced strong opposition, stating, "> The CCP gets to continue programming the app with no oversight — Trump allies get to capture the financial upside. Total sell-out of the national interest for corrupt purposes."

The proposed framework involves major US investors, including Oracle, Andreessen Horowitz, and Silver Lake, taking a significant majority stake, while Chinese investors would retain the remaining 20%. This new entity is expected to be governed by a majority-US board, with Oracle continuing its role as TikTok's secure cloud provider for U.S. user data, a measure implemented since 2022 to address data privacy concerns. The commercial terms of the deal were reportedly settled earlier in the year but faced delays due to trade tensions.

The agreement comes after years of geopolitical tension surrounding TikTok's Chinese parent company, ByteDance, and fears that Beijing could access user data or influence content. Despite the proposed US majority ownership, concerns persist regarding operational control and algorithm influence, as highlighted by Yglesias's tweet. Treasury Secretary Scott Bessent indicated that President Trump's willingness to allow TikTok to "go dark" ultimately spurred China to agree to the framework.

The path to this agreement has been complex, tracing back to the Trump administration's initial threats to ban TikTok in 2020 and subsequent proposed deals involving Oracle and Walmart. In April 2024, President Joe Biden signed legislation mandating ByteDance to divest TikTok or face a ban, a deadline that President Trump, during his current term, has repeatedly extended and even briefly reversed a shutdown in January. The finalization of this framework is now awaiting approval from both President Trump and Chinese President Xi Jinping.