The U.S. and China have reached a final agreement to transfer TikTok’s U.S. operations to American ownership, Treasury Secretary Scott Bessent announced on CBS’s Face the Nation (Oct 26, 2025).
President Trump and Xi Jinping will formally consummate the transaction on Thursday at the APEC Summit in Busan, South Korea, averting a nationwide ban set for January 19, 2025, under the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA).
Core Deal Terms
- ByteDance retains less than 20% minority stake; majority control shifts to U.S. investors including Oracle, Silver Lake, and Abu Dhabi’s MGX.
- Oracle hosts all U.S. user data in a secure cloud; no foreign access to the algorithm.
- Prevents ban affecting 170 million U.S. users.
- Upholds PAFACA (passed April 2024; upheld by Supreme Court Jan 17, 2025) over national security concerns tied to CCP influence.
- Removes Trump’s 155% tariff threat (set for Nov 1) as part of a broader trade thaw including agriculture, fentanyl, and rare earths.ReactionsBessent: “We successfully accomplished the transaction approval with China.”
GOP China hawks (e.g., Rep. John Moolenaar) remain skeptical: “Any Chinese involvement is cause for distrust.”
The deal marks a major diplomatic and national security win for the Trump administration, securing TikTok under American control while preserving access for users and creators.