The fate of TikTok in the United States remains unclear after both Washington and Beijing claimed progress had been made on a long-delayed agreement for the app’s sale. While leaders from both sides pointed to signs of cooperation, neither offered a definitive timeline or concrete details, leaving users and investors waiting for clarity.
Leaders highlight progress but avoid firm commitments
Former U.S. President Donald Trump announced this week that he had held a “very productive” phone conversation with Chinese President Xi Jinping, during which they discussed several pressing issues, including the fate of TikTok.
“I just completed a very productive call with President Xi of China. We made progress on many very important issues, including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal,” Trump wrote on Truth Social. He added that he and Xi would continue their talks and meet again during the APEC Summit in Korea this October.
Trump’s choice of words has fuelled speculation, with his statement “appreciate the TikTok approval” suggesting a green light from Beijing. However, his earlier phrasing, “we made progress,” hinted at an agreement still in motion rather than one concluded.
TikTok itself responded cautiously. In a statement on X, the company wrote: “We thank President Xi Jinping and President Donald J. Trump for their efforts to preserve TikTok in the United States. ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.”
Sale deadline extended once again
The ambiguity follows months of negotiations over compliance with a U.S. law passed in 2024, requiring ByteDance, TikTok’s Chinese parent company, to divest its American operations or face a ban. The Trump administration previously said a “framework” agreement had been reached earlier in the week, yet it also granted ByteDance another extension, moving the January 2025 deadline for the fourth time.
Reports suggest that despite talk of an imminent resolution, the process could still take 30 to 45 days. Analysts note that such delays are consistent with the complexity of the sale, which involves both corporate restructuring and regulatory oversight from two major world powers.
A consortium of American buyers
The proposed buyers include a consortium of U.S. companies and investment firms, with Oracle, Andreessen Horowitz, and Susquehanna International Group among the leading participants. Under the draft agreement, ByteDance would retain a minority share of just under 20 per cent, aligning with the requirements of the divest-or-ban law.
The deal also calls for the development of a new version of TikTok that would operate on an algorithm separated from Chinese control. This separation is seen as a crucial measure to address U.S. concerns over data security and influence from Beijing.
For now, TikTok’s 170 million American users remain uncertain about the app’s long-term future. While leaders on both sides express optimism, the lack of firm commitments has left open the possibility of further delays or political complications, including the risk of a renewed trade dispute disrupting progress.
