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Trump Declares Xi's Green Light for Landmark TikTok Deal, Reshaping US Tech Landscape

  • Nishadil
  • September 20, 2025
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  • 3 minutes read
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Trump Declares Xi's Green Light for Landmark TikTok Deal, Reshaping US Tech Landscape

In a dramatic pronouncement that sent ripples across the global tech landscape, former President Donald Trump declared that Chinese President Xi Jinping had given his personal blessing to the highly anticipated deal for Oracle and Walmart to acquire a significant stake in TikTok's U.S. operations.

This pivotal announcement, made shortly after a "productive" phone call between the two world leaders, signaled a major breakthrough in the intense geopolitical tug-of-war over the immensely popular video-sharing application.

The proposed agreement aims to establish a new entity, "TikTok Global," which would be headquartered in the United States.

According to Trump, this newly formed company would see Oracle and Walmart holding "total control" over its operations, a crucial condition designed to alleviate pressing national security concerns regarding user data. The former President enthusiastically projected the creation of 25,000 new jobs within this U.S.-based enterprise, painting a picture of significant economic benefit.

For months, the Trump administration had exerted immense pressure on ByteDance, TikTok's Chinese parent company, threatening a ban on the app in the U.S.

unless its American assets were sold to a domestic firm. The core of the concern revolved around the potential for user data—belonging to over 100 million Americans—to be accessed by the Chinese government. The new structure, with Oracle providing cloud hosting and Walmart contributing retail and e-commerce expertise, was meticulously crafted to create a firewall against such fears.

While Trump emphasized the complete U.S.

control, the intricate ownership structure remains a point of detail. ByteDance is expected to retain an 80% stake in TikTok Global, with U.S. investors (including Oracle and Walmart) collectively holding a 20% interest. This complex arrangement suggests a delicate balance, aiming to satisfy both U.S.

demands for security and ByteDance's continued involvement in its creation.

Adding another intriguing layer to the unfolding saga, Trump also mentioned a commitment from TikTok to make a $5 billion "payment" towards a U.S. education fund. The specifics and mechanisms of this financial contribution, however, were not immediately clear, leaving room for further clarification on this philanthropic aspect of the deal.

This development marks a significant turn in the fraught technological and economic relationship between the United States and China.

It showcases an intricate dance of diplomacy, corporate strategy, and national interest, all converging on a single, globally influential app. The approval from Beijing, as conveyed by President Trump, paves the way for a redefined future for TikTok in the American market, promising a blend of innovation, security, and a watchful eye on international data flows.

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