Tech Beetle briefing GB

US and China Finalize TikTok Sale Deal Ahead of Trump-Xi Summit

Essential brief

Key facts

The US and China have finalized a deal to transfer TikTok's US operations to new American-led ownership.

The agreement is part of a broader trade framework to be discussed at the upcoming Trump-Xi summit in Korea.

The deal values TikTok's US business at around $14 billion, with US investors holding a majority stake and control over the app's algorithm and board.

The sale resolves years of US-China tensions over TikTok, including previous threats to ban the app on national security grounds.

The Trump-Xi meeting will also address wider trade issues, agricultural purchases, and the fentanyl crisis.

Highlights

The US and China have finalized a deal to transfer TikTok's US operations to new American-led ownership.

The agreement is part of a broader trade framework to be discussed at the upcoming Trump-Xi summit in Korea.

The deal values TikTok's US business at around $14 billion, with US investors holding a majority stake and control over the app's algorithm and board.

The sale resolves years of US-China tensions over TikTok, including previous threats to ban the app on national security grounds.

The United States and China have reached a final agreement on the transfer of TikTok's US operations to new ownership, according to US Treasury Secretary Scott Bessent.

Speaking on CBS's Face the Nation, Bessent confirmed that all details of the deal were ironed out during talks in Madrid and that the transaction awaits formal consummation by US President Donald Trump and Chinese President Xi Jinping at their upcoming meeting in Korea.

While Bessent did not disclose specifics, he noted the TikTok deal is part of a broader trade framework agreed upon by both nations, which will be further discussed during the leaders' summit.

The move follows Trump's executive order signed on September 25, which paved the way for TikTok's US version to be majority-owned by American investors.

The deal, valued at approximately $14 billion, envisions US and international investors holding about 65% of the company, with ByteDance and other Chinese investors retaining less than 20%.

Trump's order also grants the new US-based owners control over TikTok's algorithm and board composition, including six of seven board seats.

Notably, Trump's son Barron has been suggested as a potential board member, and prominent conservative media figures Rupert Murdoch and Larry Ellison are reported to be among the new investors.

The TikTok sale follows years of US-China tensions over the app, including previous threats to ban it due to national security concerns and legislative actions, such as a ban passed by Congress and signed into law by President Joe Biden in 2024.

That ban was delayed multiple times by Trump while negotiations for the sale were underway.

The upcoming Trump-Xi meeting is expected to cover a range of issues beyond TikTok, including agricultural trade, the US-China trade balance, and the fentanyl crisis, which has influenced US tariff policies.

Trump's arrival in Malaysia for the ASEAN summit marks the start of his Asia tour, culminating in the high-profile summit with Xi where the TikTok deal and broader trade discussions will be finalized.