TikTok Deal Near: A Blueprint for U.S.-China Tech Diplomacy

Former U.S. Treasury Undersecretary Scott Bessent stated on Sunday that a deal between U.S. President Donald Trump and China on TikTok is close to being finalized, with commercial terms reportedly agreed upon. Bessent, a Trump economic advisor, emphasized that a framework has been established and that negotiations are now focused on finalizing the details. His comments come amid ongoing regulatory scrutiny of the Chinese-owned app in the U.S., which has sparked political and economic tensions between the two countries.

Bessent’s remarks suggest that the U.S. and Chinese governments have reached a preliminary understanding that could lead to a resolution of the TikTok issue, which has been a focal point in the broader trade and technology dispute between the U.S. and China. The deal reportedly involves a restructuring of TikTok’s U.S. operations to address national security concerns raised by the U.S. government. While details remain confidential, the assertion that commercial terms have been agreed upon indicates significant progress in the negotiations.

TikTok, owned by the Chinese tech giant ByteDance, has faced increasing pressure in the U.S. since 2020, when then-President Donald Trump issued an executive order requiring the app to be sold to an American company. That order was later blocked by the courts, and the issue was left unresolved as Trump left office. Now, with Trump back in the White House, the negotiations appear to have entered a new phase, with the Trump administration reportedly seeking a compromise that balances national security with the app’s economic value.

Analysts note that a potential TikTok deal could serve as a test case for broader U.S.-China negotiations on technology and trade. If a resolution is reached, it may provide a template for addressing similar concerns with other Chinese tech firms operating in the U.S. market. However, any agreement would need to satisfy both national security requirements and the interests of TikTok’s user base and business partners in the U.S. and globally.

Despite the progress outlined by Bessent, key questions remain unresolved, including how data privacy and national security safeguards will be implemented. A White House spokesperson has not yet commented on the status of the talks, but the administration has consistently signaled its intent to resolve the issue through diplomacy rather than executive action. With both parties reportedly committed to a deal, the next steps will likely involve finalizing the legal and operational structure of the new entity that will oversee TikTok’s U.S. operations.

The development has been closely watched by investors and tech industry stakeholders, who view a potential TikTok deal as a sign of easing tensions between the U.S. and China in the tech sector. While the broader U.S.-China trade relationship remains complex, a successful agreement on TikTok could be a step toward stabilizing the commercial relationship and reducing regulatory uncertainty for multinational tech firms. The final outcome, however, will depend on how the commercial and regulatory terms are structured and implemented.