US-China Trade Deal May Unblock TikTok Sale
The US and China have reached a trade agreement, reducing tariffs on Chinese imports. This breakthrough could revive the stalled negotiations surrounding the sale of TikTok's US operations.
The US government previously demanded TikTok divest its US assets to address national security concerns. A Senate-approved bill, effective January 19, 2025, mandated the sale to a US-owned entity. While deadlines have been repeatedly extended, the trade tensions between the two countries effectively halted progress.
With the new trade agreement, discussions regarding the TikTok sale may resume. Reports suggest Oracle is the likely buyer, potentially through a partnership that satisfies the "Protecting Americans from Foreign Adversary Controlled Applications Act."
Key Requirements of the Proposed TikTok Sale
- Foreign entities can own no more than 20% of the app.
- Foreign entities cannot control TikTok's algorithms, except for data sharing restrictions.
These stipulations require significant concessions from TikTok's parent company, ByteDance, and the Chinese government. Meeting these demands has been a major obstacle in finalizing the deal.
While the exact details remain undisclosed, the easing of trade tensions signals a positive development. This could bring much-needed stability for TikTok creators and users in the US, who have faced uncertainty for nearly a year.
The renewed possibility of a sale offers hope for the future of TikTok in the US market. The trade deal may be the key to unlocking a resolution.
