President Donald Trump announced Friday that he and Chinese leader Xi Jinping made progress on the Trump TikTok deal. The plan would transfer most of TikTok’s U.S. operations to American investors.
Trump said the call also covered trade, fentanyl, and efforts to end the Russia-Ukraine war. He described the conversation as “very good” and praised Xi for supporting a TikTok solution.
ByteDance, TikTok’s parent company, welcomed the outcome. A spokesperson said the company would follow U.S. laws to keep TikTok available to millions of American users.
U.S. Treasury Secretary Scott Bessent confirmed this week that both sides reached a basic framework. The Trump TikTok deal allows the app to remain in the United States under strict security rules.
The proposal gives U.S. investors an 80% majority stake, with firms like Oracle and Silver Lake included. Chinese investors would hold 20%. A U.S.-led board would oversee TikTok, including at least one Trump administration appointee.
The biggest hurdle is TikTok’s algorithm. China has resisted selling it, while U.S. law blocks any cooperation with ByteDance on the technology. That leaves American investors with the task of developing a replacement system, something TikTok rivals have struggled to match.
The Trump TikTok deal also sets the stage for a future meeting between Trump and Xi at the APEC summit. Without a deal, U.S. officials said such talks would not move forward.
Trump has repeatedly delayed enforcing a TikTok ban passed by Congress. He now views the platform as politically valuable, especially after younger voters supported him strongly in 2024.
TikTok serves about 170 million U.S. users today. While the sale would secure U.S. control, the future of its unique algorithm remains uncertain. That question may decide whether TikTok can keep its dominance in social media under American ownership.
