President Donald Trump has once again extended the deadline for TikTok’s forced divestment Tuesday, clearing the way for a US-China deal that would keep the popular video app running for 170 million American users.
For the fourth time since the start of his second term in office, Trump issued an order delaying enforcement of a 2024 law requiring TikTok’s Chinese parent, ByteDance, to sell its US operations or face a nationwide ban.
The latest deadline had been set for Wednesday.
“We’ve got a deal on TikTok. I’ve reached a deal with China. I’m going to speak to President Xi on Friday to confirm everything,” Trump told reporters outside the White House before departing for the United Kingdom on Tuesday.
Talks in Madrid this week produced a framework for a new US-based entity that would control TikTok, with American investors holding an 80% stake and Chinese shareholders keeping just under 20%, people familiar with the matter told the Wall Street Journal.
The consortium includes Oracle, Silver Lake and Andreessen Horowitz, along with existing ByteDance backers such as Susquehanna International, KKR and General Atlantic.
Oracle would manage US user data at its facilities in Texas, the sources told the Journal.
The new company would be run by a board dominated by Americans, with one seat designated by the US government, according to the report.
As part of the proposed deal, Chinese developers would allow American software engineers to build a replacement app for US users, who would be asked to switch platforms.
Its engineers are recreating content-recommendation algorithms using licensed technology from ByteDance, people with knowledge of the matter told the Journal.
Beijing’s top cyberspace regulator confirmed that both sides had reached “a basic consensus” on resolving the dispute.
Deputy director Wang Jingtao said China is open to licensing TikTok’s algorithm and other intellectual property, while agreeing to entrust operations of US user data to the new company.
The key hangup in talks has been TikTok’s algorithm. US officials have insisted it must be maintained by an American engineering team insulated from Chinese influence.
Beijing has so far resisted giving up control of technology developed in China.
The law to ban TikTok was initially signed by Trump’s predecessor, Joe Biden.
After Trump took office, he has issued multiple executive orders instructing the Justice Department not to enforce the ban, giving ByteDance time to secure a sale.
Negotiators in Madrid have also pushed the possibility of a Trump-Xi meeting later this year, according to the Journal. Beijing has pushed for Trump to visit China to finalize the agreement.
US-China relations have been frayed, particularly over the issue of trade. Both sides have imposed tariffs on the other’s imports — destabilizing ties between the world’s two largest economies.
The deal still requires signoff from US national security officials who are wary of Chinese influence.
Members of Congress who backed the 2024 law also remain skeptical that any structure relying on ByteDance’s technology can fully eliminate risks.
The next test will come when Trump and Xi speak Friday, with both sides aiming to lock in a final agreement, according to the Journal.
The Post has sought comment from the White House and the Chinese government.
