Treasury Secretary Scott Bessent said Sunday on CBS News’ Face the Nation that China and the United States “ironed out” the details of the TikTok deal, and that an official announcement is expected when the two leaders meet on Thursday.
Newsweek has filled out an online press form to contact TikTok for comment on Sunday.
Why It Matters
The announcement comes after months-long back-and-forth over the app, its algorithm, and parameters for operation in the U.S. Last month, the administration said China was onboard with the deal, but nothing has been finalized.
U.S. talks over TikTok’s ownership stem from national-security concerns. The first Trump administration raised concerns about the app and its ownership, seeking to ban it. Then-President Joe Biden gave a January 2025 deadline for a deal to be reached, or the app be shut down in the U.S. Trump, when he returned to office earlier this year, said he wanted to secure an agreement and delayed the ban, keeping the app online temporarily.
TikTok has widespread influence in the U.S., with about 43 percent of U.S. adults younger than 30 say they regularly get news from TikTok, a higher percentage than any other social media app, including YouTube, Facebook, and Instagram, according to a Pew Research Center report published on September 25.
What To Know
Bessent told Face the Nation host Margaret Brennan on Sunday, “We reached a final deal on TikTok. We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.” Trump is currently in Malaysia attending the Association of Southeast Asian Nations (ASEAN) and is headed to South Korea on Thursday where he is expected to sit down with Chinese President Xi Jinping.
Brennan pressed for details, as not too many have been made public. In late September, Trump signed an executive order titled “Saving TikTok While Protecting National Security” that outlines a framework, but public specifics over ownership remain sparse.
Bessent replied, “I’m not part of the commercial side of the transaction. 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.”
Under the terms of the deal that have so far been revealed by the White House, the app will be spun off into a new U.S. joint venture owned by a consortium of American investors—including Oracle and investment firm Silver Lake Partners.
The investment group’s total stake would be around 80 percent, while ByteDance, TikTok’s parent company, is expected to have a 20 percent stake in the entity. The board running the new platform would be controlled by U.S. investors. ByteDance would be represented by one person on the board, but they would be excluded from any security matters or related committees.
The recommendation algorithm that has steered millions of users into an endless stream of video shorts has been central in the security debate over TikTok. China previously maintained that the algorithm must remain under Chinese control by law. But a U.S. regulation that Congress passed with bipartisan support said any divestment of TikTok must mean the platform cut ties with ByteDance.
Trump’s negotiations with China come amid mounting tensions over tariffs, a keystone of Trump’s economic policy. Bessent told Brennan that an economic appeasement appears on the horizon between the two countries, “I can tell you we had a very good two days. So, I would expect that the threat of the 100 percent has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
Trump has used tariffs to correct what he calls unfair trade practices, as well as curb fentanyl imports and boost American manufacturing. China has placed retaliatory tariffs on the U.S. following Trump’s tariffs, as well as restrict exports of rare earth minerals. Trump’s latest threat to China was to impose 100 percent tariff on Chinese goods.
What People Are Saying
Trump said in September in the Oval Office: “I had a very good talk with President Xi, I have a lot of respect for him … We talked about TikTok, and he gave us the go-ahead. It’s run by American investors, American companies. Great ones, great investors.”
Robert Reich, Berkeley professor and former Secretary of Labor, said in an X post on Saturday: “The richest man on earth owns X. The second richest man on earth is about to acquire TikTok and his family could soon own both Paramount and Warner Bros. The third richest man owns Facebook, Instagram, and WhatsApp. The fourth richest man owns The Washington Post. See the problem here?”
Vice President JD Vance said in September in the Oval Office alongside Trump: “This deal really does mean Americans can use TikTok but actually use it with more confidence than they had in the past because their data is secure and it won’t be used as a propaganda weapon like it has in the past.”
What Happens Next?
Trump will also travel to Japan during his Asia tour. The U.S. president has also vocalized that he would like to meet with North Korean leader Kim Jong Un during his trip.
