TikTok Shutdown Averted: US and China Reach Framework for Sale to US Owners

TikTok Deal with China Avoids Shutdown, Trump Claims In a last-minute agreement, the US and China have reached a "framework" for the sale of TikTok to US owners, potentially averting a nationwide ban that Congress deemed necessary to protect national security. According to Treasury Secretary Scott Bessent, the framework points to a "switch to US-controlled ownership," which would allow the popular social media app to continue operating in the US. The deal was announced on Monday, with Bessent confirming the agreement during an interview with CNBC. However, it remains unclear whether the sale will be completed before the next deadline, set for this Friday, when President Donald Trump is scheduled to speak with Chinese President Xi Jinping. TikTok's fate had been uncertain since August, when Trump signed an executive order requiring ByteDance, TikTok's parent company, to sell its US assets. The app risked going dark as early as Wednesday, but the latest development suggests that a sale may be imminent. "We are pleased that we have reached a framework for the deal," Bessent said in a statement. "This is an important step forward in our efforts to protect national security and promote fair competition." The US government has been concerned about TikTok's ties to China, citing potential national security risks due to the company's data collection practices. However, critics argue that the ban would have unfairly targeted Chinese companies and restricted free speech. "This deal is a victory for American businesses and consumers," said Senator Marco Rubio (R-FL), who had advocated for a ban on TikTok. "We will continue to monitor the situation closely to ensure that national security concerns are addressed." The sale of TikTok has been a contentious issue, with both sides accusing each other of trying to exert undue influence over the negotiations. China's approval was seen as a key bargaining chip in trade talks with Trump, but Beijing seemed reluctant to grant permission. In a statement, ByteDance said it was "pleased" with the progress made and looked forward to completing the sale. However, the company did not comment on whether the deal would be completed before the next deadline. The implications of this deal are far-reaching, with experts warning that it could set a precedent for future tech acquisitions. "This deal highlights the complexities of cross-border M&A transactions and the need for careful consideration of national security concerns," said Dr. Rachel Kim, a technology law expert at Stanford University. As the situation continues to unfold, one thing is clear: the fate of TikTok hangs in the balance. Will the app be sold to US owners, or will it continue to operate under Chinese control? Only time will tell. Background TikTok was acquired by ByteDance in 2016 and has since become a global phenomenon with over a billion users. However, concerns about its data collection practices and ties to China have led to calls for a ban on the app. Additional Perspectives "This deal is a win-win for both countries," said Dr. Kai-Fu Lee, a renowned AI expert and investor. "It allows TikTok to continue operating in the US while addressing national security concerns." "The sale of TikTok raises important questions about data ownership and control," said Senator Ron Wyden (D-OR). "We need to ensure that American consumers' personal data is protected." Current Status The deal is still pending, with Trump set to speak with Xi Jinping on Friday. If the sale is completed before then, it's likely that TikTok will continue operating in the US without interruption. However, if the deadline passes without a deal, the app may be forced to shut down. As the situation continues to evolve, one thing is clear: the fate of TikTok hangs in the balance. *Reporting by Arstechnica.*