A New Chapter for TikTok: US-China Leaders Greenlight Major Tech Overhaul
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- September 20, 2025
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In a significant breakthrough that could reshape the future of one of the world's most popular apps, then-President Donald Trump declared that Chinese President Xi Jinping had given his blessing to the proposed TikTok deal. This crucial endorsement came during what Trump described as a "productive" phone call between the two global leaders, signaling a path forward for the embattled social media platform in the United States.
The agreement, a complex three-way partnership involving TikTok's Chinese parent company ByteDance, American tech giant Oracle, and retail behemoth Walmart, is designed to create a new, US-based entity known as TikTok Global.
This new company is positioned as a solution to the Trump administration's long-standing national security concerns, which revolved around allegations that user data could be accessed by the Chinese government, potentially posing a risk to American users.
Under the terms outlined by President Trump, Oracle and Walmart would collectively hold a substantial stake in the new venture, with Oracle securing 12.5% and Walmart taking 7.5%.
The deal aims for TikTok Global to be headquartered in the United States, a move intended to firmly anchor its operations within American jurisdiction. Furthermore, the governance structure would feature a five-person board of directors, with four of those seats designated for Americans, ensuring a strong domestic oversight.
A cornerstone of the proposed deal involves a fundamental shift in data management.
All US user data, a major point of contention, would be stored on Oracle's cloud servers within the United States. This provision is directly intended to alleviate fears regarding data privacy and potential foreign government access. The administration had sought explicit assurances that China would not maintain control over the new company, emphasizing the importance of securing American interests.
President Trump highlighted several perceived benefits of the deal for the United States, including the potential for significant job creation and the generation of substantial tax revenue.
He famously claimed that TikTok Global would pay a "big tax" to the US Treasury, although the precise mechanism for such a direct payment, distinct from corporate taxes, remained a subject of debate and scrutiny among financial experts. Nevertheless, the administration underscored the economic advantages tied to keeping TikTok operational and growing on American soil.
The announcement also brought a temporary reprieve for TikTok users, as the previous deadline for banning new downloads of the app was extended.
This extension provided crucial time for the intricate details of the deal to be finalized and for the necessary regulatory approvals to be secured. The deal's approval marked a potential de-escalation in the fierce technological and economic tensions that had characterized US-China relations, particularly concerning high-profile tech companies.
Before this breakthrough, TikTok had faced an uncertain future in the US.
The Trump administration had issued executive orders threatening to ban both TikTok and the Chinese messaging app WeChat, citing national security concerns. The prospect of losing access to an app used by over 100 million Americans had sparked widespread public debate and a legal challenge from TikTok itself.
The proposed TikTok Global deal, therefore, represented a complex compromise, seeking to balance geopolitical anxieties with the undeniable popularity and economic impact of a global tech phenomenon.
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