U.S. announces agreement on TikTok with China for a structural plan
The United States and China have reached a "framework" deal for the ownership of TikTok, a popular social media platform that has gained popularity in the U.S. and many other countries. The agreement was announced after the fourth round of trade talks between the two governments, held in Madrid.
The deal calls for TikTok to switch to U.S.-controlled ownership. The new ownership of TikTok's U.S. assets under the "Framework" deal involves transferring TikTok's U.S. operations from the Chinese company ByteDance to new U.S. owners, including Oracle and investment firms Silver Lake and Andreessen Horowitz. These entities will hold 80% of a new U.S.-based TikTok entity with a U.S.-dominated board.
Trade tensions between the two governments escalated sharply earlier this year, with tit-for-tat tariffs reaching triple digits and snarling supply chains. The U.S. imposed 30% duties on imports of Chinese goods, while China hit U.S. products with a 10% levy.
U.S. officials have expressed concerns about laws in China that require Chinese companies to hand over data requested by the government. These concerns have been a significant factor in the ongoing negotiations regarding TikTok's ownership.
The temporary U.S.-China trade truce expires in November, and it remains to be seen how the TikTok deal will impact future trade relations between the two nations.
TikTok's success has been accompanied by challenges, including concerns about the company's roots and ownership, and the proprietary algorithm that populates what users see on the app. In response, Instagram and YouTube have come out with their own tools for making short-form videos.
Meanwhile, an investigation found U.S. chip giant Nvidia had run afoul of China's antitrust rules, and Beijing vowed an additional probe. China also launched two investigations into the U.S. semiconductor sector, including an anti-dumping probe into some integrated circuit chips and an investigation into alleged discrimination against the Chinese chip sector.
As the negotiations continue, a possible summit between U.S. President Donald Trump and Chinese Premier Xi Jinping is being planned, though nothing has been confirmed. The current extension for the U.S. ban on TikTok expires on Sept. 17, and U.S. President Donald Trump and Chinese Premier Xi Jinping are scheduled to speak on Friday to possibly finalize the deal.
In his Truth Social post on Monday, Trump stated that the meeting in Europe "has gone VERY WELL!" and that the relationship remains a very strong one. Despite the ongoing trade tensions, both sides seem to be making efforts to find a resolution that benefits both parties.
Read also:
- Indian Oil Corporation's Panipat Refinery secures India's inaugural ISCC CORSIA accreditation for Sustainable Aviation Fuel production
- Ford Bets on an Affordable Electric Pickup Revolution with a $30,000 Design
- Rapid Charging Stations for Electric Vehicles Avoiding Grid Overload
- TikTok's Artificial Intelligence Regulation Approach Meets Stiff Opposition from German Trade Union
