US and China Reach TikTok Ownership Deal, Averting Imminent Ban
Key Points
- U.S. and Chinese officials confirm TikTok ownership agreement.
- Deadline to divest or face ban set for September 17.
- President Trump to meet President Xi on September 19.
- Deal discussed at Madrid trade meeting on September 15.
- Oracle mentioned as possible key player in the transaction.
- National‑security concerns drive the push for a ban.
- TikTok outage on January 19, 2025 spiked VPN usage.
- Over 170 million U.S. users stand to keep access to the platform.
U.S. and Chinese officials announced an ownership agreement for TikTok, ending a months‑long debate over a potential ban. The deal, confirmed during a trade meeting in Madrid, pushes back the deadline that was set for September 17 for TikTok to divest or face prohibition. President Donald Trump is slated to meet Chinese President Xi Jinping on September 19 to discuss the agreement, while reports suggest Oracle could play a role in the transaction. The resolution aims to address national‑security concerns while preserving access for the platform’s 170 million U.S. users.
Agreement Reached After Prolonged Uncertainty
U.S. and Chinese officials have confirmed that they have reached an ownership agreement concerning TikTok, the popular short‑form video platform owned by ByteDance. The announcement puts an end to a nine‑month saga that saw the platform’s future in the United States hanging in the balance.
Deadline Extension and Upcoming Talks
The deadline for TikTok to either divest its U.S. operations or be banned was set to expire on Wednesday, September 17. The Trump administration had previously extended this deadline three times, most recently to that date. President Donald Trump is expected to meet with Chinese President Xi Jinping on Friday, September 19, to discuss the details of the agreement.
Context of the Ban Threat
Calls for a ban stem from national‑security concerns, with critics arguing that Beijing could access American users’ data and use the platform to disseminate propaganda. The debate intensified after TikTok briefly went dark for about 24 hours on January 19, 2025, prompting a surge in VPN usage among U.S. users.
Details of the Deal
The ownership agreement was reportedly set during a trade meeting in Madrid on Monday, September 15, and confirmed by U.S. Treasury Secretary Scott Bessent, according to the BBC. President Trump later posted on his Truth Social account that the meeting had gone "very well." While the specific terms have not been disclosed, CBS News indicated that Oracle could play a key role if the deal is finalized.
Implications for Users and Data Security
ByteDance’s exact concessions remain unclear, as does the ultimate impact on the data security of American users. Nevertheless, the resolution is welcomed by the more than 170 million individuals and businesses that actively use TikTok in the United States.
Potential Wider Effects
Opponents of a ban argue that prohibiting the platform could harm digital rights, free speech, and access to information, while also setting a legal precedent for other countries to follow. The agreement seeks to balance security concerns with the preservation of these freedoms.