20-09-2025, 05:04 PM
ByteDance aims to proceed with TikTok deal in line with Chinese laws
https://www.scmp.com/tech/tech-war/artic...e=rss_feed
https://www.scmp.com/tech/tech-war/artic...e=rss_feed
![](https://i.imgur.com/CLvY2jA.png")
ByteDance aims to proceed with TikTok deal in line with Chinese laws
30-09-2025, 11:39 AM
The claim about TikTok being split into two companies in the US is generally accurate based on recent confirmed reports. ByteDance, TikTok's parent company, will hold less than 20% ownership in the new US-based entity, which is valued at about USD 14 billion. The majority ownership (over 80%) will be held by US and global investors. The new US joint venture, which includes firms like Oracle and Silver Lake, will control user data, content, and the algorithm for US users, and Oracle will oversee the US user data and algorithm, aiming to protect national security.
However, ByteDance will maintain control over some operations, especially the e-commerce and advertising businesses in the US, which are significant revenue sources. This segment is valued much higher, around USD 40 billion, and ByteDance's continued control raises questions about the thoroughness of the divestiture mandated by the 2024 US law. Essentially, the Chinese side retains influence over the technology and revenue streams while the US investors and Oracle manage critical security-sensitive parts of the operation.
President Donald Trump signed an executive order approving this deal as meeting US national security requirements, with Chinese President Xi Jinping giving a "go-ahead" during a phone call, though China has been quieter publicly on the matter. The deal will likely see further regulatory reviews by both US and Chinese authorities, and some details are still being finalized.
Regarding the timing linked to Premier Xi Jinping's visit to the US, the deal has already been formally signaled and approved by both Presidents, so Xi's visit is not the decisive moment for the deal's confirmation but may coincide with further diplomatic talks. Thus, the essence of the deal and its current structure are already known and crystallized publicly before Xi's visit.
In summary, TikTok is not fully sold off in a way that completely relinquishes Chinese technology and revenue control. It is split into a US-controlled front with majority US ownership and a backing Chinese-owned part holding critical tech and revenue assets. The narrative that the US side might be "taken for a ride" has some basis given ByteDance's retained interests, despite the deal meeting formal US legal and security requirements
The US government has officially confirmed several key parts of the TikTok deal through President Donald Trump's executive order signed on September 25, 2025. Key confirmed facts include:
The US arm of TikTok is valued at approximately USD 14 billion.
ByteDance, TikTok's Chinese parent company, will maintain less than 20% ownership (19.9%) in the new US-based entity to comply with the 2024 US law requiring divestiture or ban.
The majority ownership, more than 80%, will be by a consortium of American and global investors.
Oracle and private equity firm Silver Lake, along with investors like Michael Dell and Rupert Murdoch, will have prominent roles in the new US company.
Oracle will control TikTok's US user data and oversee the app's algorithm to address US national security and data privacy concerns.
The US government has temporarily postponed the enforcement of the ban-or-sale law until December 16, 2025, to allow finalization of the deal and regulatory approvals.
The deal has been acknowledged and informally approved by Chinese President Xi Jinping in a phone conversation with Trump, signaling cooperation but still pending Chinese regulatory clearances.
The executive order frames the deal as a "qualified divestiture" meeting US national security requirements. It also extends to other ByteDance platforms like Lemon8 and CapCut in the US. Though many financial and legal details remain in negotiation, the US government has publicly confirmed these major structural elements of the deal.
The distinction between Premier Li Qiang and President Xi Jinping is important. Premier Li Qiang, as China's premier, is a different official from President Xi Jinping, the paramount leader of China. According to recent reports including from the Wall Street Journal, President Xi Jinping is expected to meet President Donald Trump at an upcoming Asia-Pacific leaders' gathering in South Korea in early 2026. This will be the first meeting of the two leaders, with potential follow-up visits anticipated, including a possible visit by Trump to China.
The ongoing TikTok deal and its recent developments are being interpreted as part of a broader thaw in US-China relations. Premier Li Qiang’s recent U.S. visit and closed-door meetings emphasized Beijing's desire for stable relations with Washington. The TikTok deal, approved by Trump and informally recognized by Xi Jinping, appears to symbolize a move toward friendlier diplomatic engagements and easing geopolitical tensions over issues like trade, technology, and national security.
Thus, TikTok's restructuring and the upcoming high-level bilateral meetings collectively point toward a diplomatic opening and a potential improvement in US-China relations during 2025-2026
However, ByteDance will maintain control over some operations, especially the e-commerce and advertising businesses in the US, which are significant revenue sources. This segment is valued much higher, around USD 40 billion, and ByteDance's continued control raises questions about the thoroughness of the divestiture mandated by the 2024 US law. Essentially, the Chinese side retains influence over the technology and revenue streams while the US investors and Oracle manage critical security-sensitive parts of the operation.
President Donald Trump signed an executive order approving this deal as meeting US national security requirements, with Chinese President Xi Jinping giving a "go-ahead" during a phone call, though China has been quieter publicly on the matter. The deal will likely see further regulatory reviews by both US and Chinese authorities, and some details are still being finalized.
Regarding the timing linked to Premier Xi Jinping's visit to the US, the deal has already been formally signaled and approved by both Presidents, so Xi's visit is not the decisive moment for the deal's confirmation but may coincide with further diplomatic talks. Thus, the essence of the deal and its current structure are already known and crystallized publicly before Xi's visit.
In summary, TikTok is not fully sold off in a way that completely relinquishes Chinese technology and revenue control. It is split into a US-controlled front with majority US ownership and a backing Chinese-owned part holding critical tech and revenue assets. The narrative that the US side might be "taken for a ride" has some basis given ByteDance's retained interests, despite the deal meeting formal US legal and security requirements
The US government has officially confirmed several key parts of the TikTok deal through President Donald Trump's executive order signed on September 25, 2025. Key confirmed facts include:
The US arm of TikTok is valued at approximately USD 14 billion.
ByteDance, TikTok's Chinese parent company, will maintain less than 20% ownership (19.9%) in the new US-based entity to comply with the 2024 US law requiring divestiture or ban.
The majority ownership, more than 80%, will be by a consortium of American and global investors.
Oracle and private equity firm Silver Lake, along with investors like Michael Dell and Rupert Murdoch, will have prominent roles in the new US company.
Oracle will control TikTok's US user data and oversee the app's algorithm to address US national security and data privacy concerns.
The US government has temporarily postponed the enforcement of the ban-or-sale law until December 16, 2025, to allow finalization of the deal and regulatory approvals.
The deal has been acknowledged and informally approved by Chinese President Xi Jinping in a phone conversation with Trump, signaling cooperation but still pending Chinese regulatory clearances.
The executive order frames the deal as a "qualified divestiture" meeting US national security requirements. It also extends to other ByteDance platforms like Lemon8 and CapCut in the US. Though many financial and legal details remain in negotiation, the US government has publicly confirmed these major structural elements of the deal.
The distinction between Premier Li Qiang and President Xi Jinping is important. Premier Li Qiang, as China's premier, is a different official from President Xi Jinping, the paramount leader of China. According to recent reports including from the Wall Street Journal, President Xi Jinping is expected to meet President Donald Trump at an upcoming Asia-Pacific leaders' gathering in South Korea in early 2026. This will be the first meeting of the two leaders, with potential follow-up visits anticipated, including a possible visit by Trump to China.
The ongoing TikTok deal and its recent developments are being interpreted as part of a broader thaw in US-China relations. Premier Li Qiang’s recent U.S. visit and closed-door meetings emphasized Beijing's desire for stable relations with Washington. The TikTok deal, approved by Trump and informally recognized by Xi Jinping, appears to symbolize a move toward friendlier diplomatic engagements and easing geopolitical tensions over issues like trade, technology, and national security.
Thus, TikTok's restructuring and the upcoming high-level bilateral meetings collectively point toward a diplomatic opening and a potential improvement in US-China relations during 2025-2026
« Next Oldest | Next Newest »
Users browsing this thread: 1 Guest(s)
