Summary: U.S. Treasury Secretary Scott Bessent recently spent two days in Malaysia negotiating with Chinese officials, reportedly finalizing a deal that would give an American consortium control over TikTok’s U.S. operations. This agreement is expected to be sealed when Presidents Trump and Xi meet at the upcoming APEC summit in South Korea.
Trade Talks Between the US and China
Scott Bessent, the U.S. Treasury Secretary, has been in Malaysia for two days engaging in trade negotiations with Chinese representatives. In a Sunday interview on CBS’s Face the Nation, Bessent described the discussions as “a very good two days.” He indicated that the deal to transfer control of TikTok to an American company is finalized and ready to be signed during the meeting between Presidents Trump and Xi in South Korea next week.
Interestingly, Bessent revealed that many of the deal’s details were actually negotiated last month in Madrid during his trip to Spain and the UK. This sheds some light on President Trump’s somewhat cryptic statement on Truth Social from September 19, where he said, “The call was a very good one, we will be speaking again by phone, appreciate the TikTok approval, and both look forward to meeting at APEC!”
What Does the TikTok Deal Entail?
Last spring, a formal ban on TikTok was passed in the U.S., which was supposed to take effect this January. However, President Trump has delayed enforcing this ban multiple times. Instead of an outright ban, it appears the administration has been working towards a negotiated solution that would bring TikTok under U.S. control.
Rumors suggest that the deal involves creating a separate version of TikTok specifically for U.S. users. This new app would be controlled by a group of U.S.-based investors, while the Chinese parent company, ByteDance, would retain ownership of the TikTok algorithm and license it to the U.S. spinoff.
Who Will Control TikTok in the US?
The consortium expected to take control includes notable figures such as the Murdoch family, Oracle CEO Larry Ellison, and Dell Technologies CEO Michael Dell. This group would oversee the U.S. operations, ensuring compliance with American regulations and addressing national security concerns.
Next Steps and Official Statements
Bessent was cautious with details but confirmed his role was to secure Chinese approval for the transaction, which he believes was successfully achieved over the past two days. The deal is anticipated to be officially finalized when Presidents Trump and Xi meet at the APEC summit in South Korea next week.