In a major development, the United States and China have reached a deal that allows the popular social media app TikTok to continue operating in the United States. The agreement comes after months of discussions over concerns about data security and foreign influence.
The deal was announced on September 15, following trade talks in Spain, by US Treasury Secretary Scott Bessent. It is set to be finalized with a phone conversation between US President Donald Trump and Chinese leader Xi Jinping on Friday. According to officials, the agreement will transfer the oversight of TikTok’s US operations away from its parent company in Beijing, ByteDance, to a structure that is more acceptable to US regulators.
ByteDance is the Chinese company that created TikTok. It manages platform’s operations around the world and is based in Beijing. Under this agreement, its US operations will be separated from ByteDance’s control, addressing concerns about sensitive American user data being accessed from overseas.
Officials described the deal as a unique arrangement between “two private parties”. Under this framework, the app will continue serving millions of American users while meeting regulatory requirements. The plan aims to make sure that user information, such as videos, likes, and personal details, is stored safely and remains under US oversight.
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Oracle Takes Center Stage as Technology Partner
A key part of the deal involves Oracle, the US-based software giant. Oracle is a technology company that provides software, cloud services, and other infrastructure to businesses worldwide. In this deal, Oracle will play a central role in managing TikTok’s US operations and protecting American user data.
While the exact details of Oracle’s involvement are still being finalized, reports indicate that it will provide the technical infrastructure needed to keep TikTok running smoothly in the US. This includes storing data on secure servers, managing cloud systems, and possibly acquiring a stake in TikTok’s US business.
By partnering with Oracle, TikTok aims to reassure US regulators that its operations in America are safe and transparent. Oracle’s involvement is expected to help enforce strict data security measures and separate the management of US user data from ByteDance, TikTok’s Chinese parent company.
Another important aspect of the deal is TikTok’s recommendation algorithm. This is the system that decides which videos appear on users’ feeds based on what they like or watch. US officials have stressed the need for transparency in how this algorithm works, ensuring it cannot be influenced by foreign interests.
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Deadline and Remaining Questions
The agreement comes with a tight timeline. The US government had set September 17 as the original deadline for TikTok to resolve its ownership structure. Officials have indicated that the deadline could be extended by up to 90 days to finalize all aspects of the agreement.
Despite the progress, some important questions remain unanswered. These include the exact fate of ByteDance’s ownership stake in TikTok’s US operations, how regulators will monitor compliance, and the precise role of Oracle in daily management. Analysts say these details will be critical to maintaining trust with users and regulators alike.
Even with these uncertainties, the agreement marks a major step forward. It ensures TikTok can continue operating in the US, protects user data under American oversight, and introduces a strong technology partner in Oracle to manage operations safely.
This historic arrangement comes amid growing scrutiny of foreign technology companies in the United States. It represents a rare compromise between the US and China, balancing national security concerns with the interests of the tech industry and the millions of Americans who use TikTok every day.