The recent agreement between the United States and China regarding the ownership of TikTok marks a significant milestone in the ongoing struggle over technological sovereignty. Under the terms of the deal, China retains a 20% stake in the platform and maintains control over its algorithm, a critical component of TikTok’s success. While American shareholders will oversee the algorithm’s usage, they will not own it outright. This arrangement underscores the ideological and strategic importance of algorithms in the digital age, as China views them as sacred and untouchable assets that traditional intellectual property rights (IPR) cannot adequately protect.
For China, the deal represents a partial victory. By retaining a minority stake, China ensures its continued presence in the U.S. market, a foothold that would have otherwise been lost entirely. The compromise highlights the broader ‘techno-theological’ disputes between the two nations, reminiscent of past conflicts such as the 2009 Google-China standoff. In that instance, China demanded access to Google’s source code, a condition the tech giant refused, leading to its exit from the Chinese market. Similar demands were made to other U.S. platforms like Facebook and Twitter, which also failed to gain entry.
TikTok’s case is unique due to its pivotal role in American politics, particularly its influence on the electoral process. With over 170 million followers on TikTok, President Donald Trump’s campaign would have been significantly impacted by a shutdown. This political leverage likely influenced the U.S. decision to accept the compromise, despite concerns over the platform’s potential risks.
The TikTok deal draws parallels to the Vatican’s agreement with China on the appointment of bishops, where the Pope retains control over the core doctrine while China manages its implementation domestically. Both agreements reflect a pragmatic approach to maintaining limited access in a highly controlled environment.
This deal also raises questions about the future of IPR and technological sovereignty. As algorithms become the cornerstone of modern innovation, their protection and control will remain a contentious issue. China’s insistence on retaining control over TikTok’s algorithm signals its broader strategy of state-directed technological development, challenging the Western model of IPR-based innovation.
The TikTok compromise is a testament to the evolving dynamics of U.S.-China relations, where ideological and technological disputes are increasingly resolved through pragmatic, albeit uneasy, agreements.