A landmark agreement over TikTok’s US operations is on the horizon, with US President Donald Trump and Chinese President Xi Jinping poised to discuss final terms this Friday. This follows a framework agreement reached by top officials from both nations earlier this week, which could see TikTok’s US operations acquired by a consortium of American firms, including tech giant Oracle and investment firms Andreessen Horowitz and Silver Lake. The deal, described by experts as a “rare breakthrough” in US-China trade relations, aims to resolve a long-standing issue that has dominated headlines for years. Chinese state media has hailed the potential agreement as a “win-win” for both countries, while Trump has emphasized its importance for younger users. However, critical details remain unclear, particularly regarding TikTok’s algorithm—the core technology driving its success. ByteDance, TikTok’s Chinese parent company, has been reluctant to part with its prized algorithm, but Beijing has signaled a willingness to allow licensing rather than outright transfer. This marks a significant shift from China’s previous hardline stance. Experts warn that a “stripped-down” version of the app in the US could impact user experience, though it would allow ByteDance to retain its competitive edge. The deal must still navigate political hurdles in the US, with lawmakers expressing concerns over Chinese influence. Despite these challenges, the agreement could set a precedent for other Chinese tech companies seeking to enter the US market, potentially easing broader trade tensions between the two nations.
