TikTok faces US deadline as Trump pushes investor deal
TikTok’s future in the United States is again under intense scrutiny as the app approaches a new deadline to sell its US operations or face a nationwide ban. The latest extension, signed by President Donald Trump, sets December 16 as the cutoff date. The decision follows months of back-and-forth negotiations between American and Chinese officials and repeated delays that have left TikTok’s American users uncertain about the app’s long-term availability.
The current framework under discussion would create a new US-based company to operate TikTok domestically, with American investors expected to hold an 80 percent stake. Chinese shareholders, including ByteDance, would retain the remaining 20 percent. The proposed investor group includes Oracle, private equity firm Silver Lake, and venture capital firm Andreessen Horowitz. A majority-US board would oversee the new company, with at least one member directly appointed by the Trump administration.
For Washington, the primary issue has been safeguarding national security. Concerns about how TikTok collects and manages user data have driven bipartisan pressure to force a divestment of its US operations. To address these concerns, Oracle is expected to handle the storage of American user data. ByteDance has also begun developing a new US-specific version of the app, which would eventually transfer to the American investors as part of the agreement.
Another challenge lies in the algorithms that power TikTok’s popular recommendation system. Reports suggest that ByteDance may license the technology to the new US entity, but engineers may need to rebuild much of the system. This could reduce the app’s effectiveness compared to the global version, raising questions about whether American users will continue to enjoy the same experience.
The negotiations reflect broader US-China tensions that have affected trade and technology. China had resisted giving up control of TikTok for months, but its position shifted after Trump signaled he was willing to let the app go dark in the United States. The agreement is also seen as a potential stepping stone to a meeting between Trump and Chinese President Xi Jinping, expected to take place in the near future.
While the framework has been agreed in principle, officials have stressed that details remain under discussion. Both sides aim to finalize the agreement within the next 30 to 45 days, which would push the timeline into early November. If successful, the deal would resolve years of uncertainty surrounding TikTok in the US, though experts caution that the app’s influence has already begun to fade as competitors replicate its short-video format.
Until the deal is formally completed, TikTok remains at risk of being banned in the United States after December 16. For now, American users and investors are left waiting for confirmation that the app will remain accessible under new ownership.
