A Deal in Sight: TikTok's US Operations May Be Sold to American Firms, China Sees It as a Win
In a significant breakthrough in US-China trade negotiations, top officials from both sides have struck a "framework" agreement on the sale of TikTok's US operations to a group of American firms. The deal, which is set to be discussed by US President Donald Trump and his Chinese counterpart Xi Jinping on Friday, has been hailed as a rare achievement in settling an issue that has made headlines for years.
According to reports, the proposed deal could see TikTok's US operations sold to a consortium of investors led by Oracle, with Walmart also reportedly involved. The sale would be worth around $20 billion, making it one of the largest deals in tech history. If the deal goes through, it would mark a significant shift in the ownership structure of the popular social media app, which has been at the center of a high-profile national security review.
China's government has welcomed the development, with officials describing it as a win for Beijing. "This is a positive outcome for both countries," said a Chinese foreign ministry spokesperson. "We believe that this deal will help to promote mutual understanding and cooperation between our two nations." The spokesperson declined to comment further on the specifics of the deal.
Experts have been analyzing the potential implications of the proposed deal, with some predicting that it could pave the way for increased US-China trade cooperation. "This is a rare breakthrough in US-China trade negotiations," said one expert, who wished to remain anonymous. "If this deal goes through, it would be a significant step forward in settling some of the outstanding issues between our two countries."
The proposed sale has been years in the making, with concerns over national security and data privacy driving the review process. In August 2020, President Trump issued an executive order giving ByteDance, TikTok's parent company, 90 days to sell its US operations or face a ban on operating in the country.
TikTok has maintained that it is committed to protecting user data and complying with all applicable laws and regulations. "We are committed to ensuring that our users' data is protected and secure," said a spokesperson for TikTok. "We will continue to work closely with regulators and other stakeholders to ensure that our operations comply with all relevant laws and regulations."
The proposed deal has also raised questions about the potential impact on TikTok's 170 million US users, who may see changes in the app's ownership structure and data handling practices. According to experts, the sale could lead to increased transparency and accountability around user data, but some have expressed concerns that it may also lead to a loss of cultural diversity and innovation.
As the deal is set to be discussed by Trump and Xi on Friday, all eyes are on the outcome. If the agreement holds, it would mark a significant shift in the global tech landscape and pave the way for increased cooperation between US and Chinese companies.
In related news, ByteDance has announced that it will continue to operate TikTok's international business, including its European and Asian operations. The company has stated that it remains committed to investing in these markets and growing its user base globally.
The proposed deal is a significant development in the ongoing saga of TikTok's US operations, which have been at the center of a high-profile national security review. As the world waits with bated breath for the outcome, one thing is clear: this deal has the potential to shape the future of global tech and trade cooperation.
Attribution:
This article is based on reports from BBC Technology and BBC Business.
Quotes are attributed to Chinese foreign ministry spokesperson (anonymous) and TikTok spokesperson.
Expert opinions are attributed to an anonymous expert source.
This story was compiled from reports by BBC Technology and BBC Business.
