Trump and Xi to Finalize TikTok Deal on Thursday, Says Treasury Secretary
Significant developments have emerged regarding the future of TikTok as the United States and China finalize an agreement. Treasury Secretary Scott Bessent announced that both countries are prepared to complete the transaction. This follows discussions held last month in Madrid, where a preliminary framework for the deal was established.
Details of the TikTok Deal
Bessent revealed in an appearance on CBS’ Face the Nation that a final deal on TikTok has been reached. He stated, “We reached one in Madrid, and I believe that as of today, all the details are ironed out.” The finalization is scheduled for Thursday in Korea, where U.S. President Donald Trump and Chinese leaders will officially consummate the agreement.
Executive Order and Key Provisions
Trump signed an executive order that mandates TikTok’s owner, ByteDance, to either divest the app or face a ban in the U.S. The order outlines that TikTok’s operations will come under a new board of directors. Key elements of the deal include:
- Control of TikTok’s recommendation algorithm
- Ownership of source code
- Management of content moderation
Oracle will oversee security operations for TikTok, highlighting the involvement of major investors. Notable stakeholders include:
- Oracle, led by Larry Ellison
- Fox Corp, owner of Fox News
- Andreessen Horowitz
- Silver Lake Management
Broader Trade Discussions
While Bessent spoke from Kuala Lumpur, Malaysia, U.S. and Chinese trade negotiators also reached a framework for addressing tariffs and other trade issues. U.S. trade negotiator Jamieson Greer mentioned that discussions included rare earth minerals, but did not provide specific details on how these would be affected.
China has indicated plans to tighten export controls on these critical minerals, which are essential for semiconductor manufacturing and other technological products. Greer noted the breadth of topics covered in their discussions, including extending trade truce agreements.
