In a significant move for U.S.-China relations, U.S. Treasury Secretary Scott Bessent recently spent two days in Malaysia negotiating with Chinese representatives over trade agreements. As he stated during an appearance on CBS’s Face the Nation, it was “a very good two days”—so promising, in fact, that a deal paving the way for an American company to take over TikTok seems ready for finalization. This agreement is slated to be announced when Presidents Trump and Xi convene in South Korea next week.
Bessent revealed that the foundational negotiations took place last month in Madrid, during a trip to Spain and the UK. This detail helps clarify the cryptic statement that President Trump made on Truth Social regarding the TikTok deal on September 19. He remarked, “The call was a very good one, we will be speaking again by phone, appreciate the TikTok approval, and both look forward to meeting at APEC!”
What did “the TikTok approval” actually signify? It likely pertains to this emerging deal.
Last spring, a de jure ban on TikTok was enacted, intended to come into effect in January. President Trump has repeatedly postponed the enforcement of this ban, potentially delaying the removal of the app from stores or restricting its usage. Instead, the administration appears to be making incremental strides to negotiate a U.S. control of the app.
Reports suggest that the U.S. is set to control a new version of TikTok. It appears that a deal has been established for a separate app specifically for U.S. users, which will be managed by a group of American investors, while the Chinese parent company ByteDance retains the valuable TikTok algorithm by licensing it to the U.S. version.
The consortium mentioned as potential owners includes prominent figures like the Murdoch family, Oracle CEO Larry Ellison, and Dell Technologies CEO Michael Dell.
Bessent kept the specifics under wraps. He mentioned, “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.”
Could this new TikTok deal change how users interact with the app? Many are excited to see if the new management will indeed reshape the platform while keeping the features that users love. Additionally, how will the relationships between the U.S. and China evolve as both nations navigate this economic landscape?
What impact might this deal have on TikTok users in the U.S.? As the app transitions into an American-controlled entity, its governance may lean toward U.S. regulatory standards, impacting user privacy and content moderation.
Why is the future of TikTok so important? With millions of daily users and vast amounts of data, having control over this platform could significantly influence social media marketing and digital engagement strategies.
How will the TikTok transition affect U.S. investors? The collaboration with high-profile investors could lead to innovation and possibly a shift in the app’s advertising model, enhancing monetization opportunities for creators.
In conclusion, the next few weeks will be pivotal for not just TikTok, but also for international relations and the social media landscape. Keep an eye on how this crucial negotiation unfolds, as it could set the tone for future U.S.-China interactions. For more insights and updates on tech and finance, explore related content at Moyens I/O.