TikTok’s future in the United States is again in doubt, with its influential algorithm at the heart of a significant geopolitical conflict. The short-video platform, which has nearly 170 million users in America, is now reliant on a possible agreement between Washington and Beijing. President Donald Trump has emphasized that ByteDance, TikTok’s Chinese parent company, must reorganize its US operations with predominantly American ownership. However, the main challenge is figuring out who will control TikTok’s ‘secret sauce’ — the algorithm that powers its highly successful recommendation system. While the US government seeks increased oversight, China regards the algorithm as sensitive intellectual property that cannot be transferred. Here are the key developments summarized: 1.
Framework Deal Between US and China After recent discussions in Madrid, US Treasury Secretary Scott Bessent announced that both countries have established a basic framework to restructure TikTok’s US operations. Reports indicate that this plan involves creating a new company for TikTok’s US business, primarily owned by Americans. China’s international trade representative Li Chenggang underlined the need for economic cooperation, indicating both nations aim for a political and diplomatic success. President Trump has postponed the ban deadline to December 16, 2025, providing a limited timeframe for negotiators to finalize the agreement. 2. Who Will Own TikTok in the US?
Ownership details are still under negotiation, but reports suggest that a group of American investors may control about 80 percent of TikTok’s US entity. Key players in this group include Oracle, the private-equity firm Silver Lake, and venture capital firm Andreessen Horowitz. Oracle, already responsible for managing TikTok’s US user data, is anticipated to be instrumental in server management and possibly daily operations. This arrangement would ensure that the board of TikTok US is mainly composed of American stakeholders, with the possibility of government oversight. 3. The Algorithm Question The most controversial topic remains TikTok’s algorithm — the recommendation system that determines what content users encounter.
US lawmakers argue that as long as ByteDance keeps ownership, American users’ data and content moderation could be at risk. Conversely, China insists that the algorithm cannot be sold due to its export and cybersecurity regulations. A potential compromise being considered is licensing the technology to the US spin-off, which would allow TikTok’s American version to utilize a licensed version, retrained specifically with US data, while ByteDance retains ownership rights. 4. The Political and Security Debate Washington asserts that any final agreement must meet US national security standards. Lawmakers from the House Select Committee on China argue that sharing the algorithm with ByteDance is unacceptable. Meanwhile, Beijing warns that any transfer of crucial technology must adhere to its stringent regulations.
These conflicting positions complicate negotiations, leaving the outcome of the deal uncertain. 5. What’s Next for TikTok Users? President Trump is expected to discuss the final details of the agreement with Chinese President Xi Jinping later this week. With the December 16 deadline approaching, both parties are under pressure to reach a deal that addresses political, economic, and security concerns. For now, TikTok’s 170 million American users continue to scroll, awaiting clarity on whether the app’s future will be determined in Washington, Beijing, or the courts.