Summary: U.S. Treasury Secretary Scott Bessent recently wrapped up productive trade talks in Malaysia with Chinese officials, paving the way for a major TikTok deal. The agreement, which aims to give American investors control over TikTok’s U.S. operations, is expected to be finalized when Presidents Trump and Xi meet in South Korea next week.
Trade Talks Between the U.S. and China
Scott Bessent, the U.S. Treasury Secretary, spent two days in Malaysia negotiating trade matters with Chinese representatives. In a Sunday interview on CBS’s Face the Nation, Bessent described the discussions as “a very good two days.” He revealed that the TikTok deal was largely settled during a meeting in Madrid last month, where he met Chinese negotiators while traveling through Spain and the UK.
What Does the TikTok Deal Entail?
This development sheds light on a cryptic statement President Trump posted on Truth Social on September 19, where he mentioned “TikTok approval” following a phone call and expressed anticipation for a meeting at APEC. The U.S. had passed a de jure ban on TikTok in spring last year, which was set to take effect in January. However, enforcement has been delayed multiple times, suggesting ongoing negotiations to bring TikTok under U.S. control.
Who’s Behind the New TikTok?
Rumors indicate that the U.S. will have significant control over a new version of TikTok tailored for American users. The plan involves spinning off a separate app for the U.S. market, managed by a consortium of U.S.-based investors. Meanwhile, ByteDance, TikTok’s China-based parent company, would retain ownership of the algorithm and license it to the U.S. spinoff.
The group of new owners reportedly includes notable figures such as the Murdoch family, Oracle CEO Larry Ellison, and Dell Technologies CEO Michael Dell. Bessent, however, remained tight-lipped on specifics, stating, “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.”
Looking Ahead
The deal is expected to be officially sealed when Presidents Trump and Xi meet at the APEC summit in South Korea next week. This agreement could mark a significant shift in how TikTok operates within the U.S., balancing national security concerns with the app’s widespread popularity.