A breakthrough in the long-running dispute over TikTok could be close, with US President Donald Trump and Chinese President Xi Jinping expected to discuss terms of a potential agreement on Friday.
Officials from both governments reached a “framework” deal earlier this week that could see TikTok’s US operations sold to a consortium of American companies, including Oracle and investment groups Andreessen Horowitz and Silver Lake. If completed, the move would mark a rare moment of progress in US-China trade relations, which have often been marked by tension and uncertainty.
At the heart of the negotiations lies TikTok’s recommendation algorithm – the system widely credited with making the app so popular among its 170 million American users. Beijing has long resisted calls to hand over control of the algorithm, which analysts describe as the company’s most valuable asset. However, China’s cybersecurity regulator has recently indicated it may allow ByteDance, TikTok’s parent company, to license the technology to a US-based owner, while retaining full ownership in Beijing.
Such an arrangement would give American users continued access to the app while ensuring ByteDance keeps control of its “crown jewels.” Experts warn that a lighter, stripped-down version of the software could affect how users experience the app, possibly reducing the diversity of content shown in feeds.
The talks come against a backdrop of national security concerns in Washington. Lawmakers have argued that Chinese ownership of TikTok poses risks over data access and influence, leading to legislation signed last year requiring a sale or risk of a nationwide ban. While Trump once supported banning the app, he has since credited TikTok with boosting youth voter turnout during his 2024 election win and now backs keeping it in the US market.
Still, political hurdles remain. Any final agreement would likely need approval from Congress, where some lawmakers have already expressed doubts. “The statute requires full separation from foreign adversary control,” said Republican lawmaker John Moolenaar, warning that licensing the algorithm may not meet that standard.
Beyond TikTok, observers say the deal could set a template for future Chinese technology entering the US through licensing arrangements. Analysts point out that similar approaches could apply to sectors such as electric vehicle batteries or rare earth supplies, both areas where Chinese firms dominate.
For Beijing, the deal offers a way to preserve its control over advanced technologies while maintaining access to the lucrative US market. For Washington, it provides a compromise that keeps TikTok available to American users while attempting to safeguard national interests.
Whether the compromise holds will depend on political will on both sides. As one expert noted, TikTok may look unchanged to its millions of US users, but behind the scenes it will rely on borrowed code, firewalled data, and a fragile balance of trust between two global rivals.
