The US is reportedly closer than ever to resolving the long-running TikTok controversy. US Treasury Secretary Scott Bessent has confirmed that a framework has been established for a final sell-off deal that would transfer control of TikTok’s US operations to an American investor, while still allowing its Chinese parent company ByteDance to retain a key ownership stake.
According to Bessent, the proposed deal is “between two private parties” and the commercial terms have already been agreed upon, ahead of the law’s deadline this week. President Donald Trump is slated to meet Chinese President Xi Jinping later this week to finalize details.
The agreement aims to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), under which ByteDance would need to divest certain control or face a ban in the United States.
One sticking point is TikTok’s algorithm. Reports say the Chinese government will not agree to sell TikTok’s algorithmic core under any circumstances, which remains a major issue. Meanwhile, US officials suggest the deadline for the deal might be extended by 90 days to allow both sides more time to iron out the finer points.
If finalized, TikTok U.S. creators may breathe easier, as uncertainty around bans and legal exposure recedes. The app may get back to expanding monetization tools in the U.S., like in-stream shopping, especially if full or partial control shifts under U.S. oversight.
On the flip side, critics warn that unless U.S. control includes oversight of the algorithm, many of the national security concerns will remain. Others say the Chinese characteristics of the app will be hard to remove without compromising performance or global reach.
President Trump and President Xi are expected to discuss the deal specifically this week. Whether the deadline (currently September 17th) holds or is extended will be watched closely. Congress will also likely have a role in approving or overseeing any final agreement.