Bytedance will keep allowing TikTok to operate for US users

Bytedance will keep allowing TikTok to operate for US users

In a significant development, ByteDance has agreed to retain a 19.9% stake in TikTok's American operations, ensuring the app can continue to operate in the United States. This agreement comes amidst ongoing trade negotiations between the U.S. and China, with a deadline for TikTok's sale or ban looming .

The deal, announced by President Donald Trump on Tuesday, involves transferring TikTok's American assets to U.S. owners, with ByteDance maintaining a single largest ownership stake just under the 20% threshold set by U.S. law . The agreement includes provisions for an American-dominated board with a member designated by the U.S. government, echoing a similar arrangement for Nippon Steel's acquisition of U.S. Steel .

The deal is expected to be finalized within the next 30 to 45 days, with ByteDance having until December 16 to complete the transfer . The U.S. Treasury Secretary, Scott Bessent, emphasized the importance of national security safeguards in the deal, noting that the commercial terms had been largely agreed upon since March .

This development follows a series of extensions to TikTok's deadline, with the most recent extension set to expire on Wednesday . The ongoing trade talks between the U.S. and China, which resumed in Madrid, also cover broader issues such as tariffs and export licenses for rare earth materials .

The agreement is a relief for TikTok, which has faced scrutiny over potential national security risks due to its Chinese ownership. The app, with over 170 million U.S. users, has been a subject of intense debate, with concerns about data privacy and potential influence operations .

The deal signals a potential thaw in U.S.-China relations, with both countries seeking to resolve long-standing trade disputes. However, the agreement may still require approval from the Republican-controlled Congress, which passed a law in 2024 mandating TikTok's divestiture .

In summary, ByteDance's agreement to retain a stake in TikTok's U.S. operations is a significant step in resolving the ongoing saga, ensuring the app's continued presence in the U.S. while addressing national security concerns.