China has responded to President Donald Trump’s executive order approving a $14 billion deal to restructure TikTok’s operations in the United States.
The move followed Trump’s announcement that Chinese leader Xi Jinping had signed off on the deal during their recent talks.
Why It Matters
TikTok, with more than 170 million U.S. users, has become central to how younger Americans consume information and culture. It also supports the livelihoods of thousands of influencers and small businesses who depend on its reach. Control of the app’s powerful recommendation algorithm has been at the center of U.S. security concerns, with lawmakers warning it could be exploited for foreign influence.
The controversy dates back to the Trump administration’s first attempt to ban the app in 2020 and escalated after Congress passed a 2024 law requiring ByteDance to divest or face a nationwide ban. Trump extended the deadline multiple times before issuing Thursday’s order, which also delays enforcement until December 16, 2025.
Newsweek reached out to the White House via email for comment.
What To Know
The order creates a new U.S.-controlled company backed by Oracle, Silver Lake Partners, and Michael Dell. ByteDance would hold a minority stake but be excluded from national security matters.
Guo Jaikun, spokesperson for China’s Foreign Ministry, said Beijing respected the ability of companies to negotiate commercially. “It is hoped that the United States will provide an open, fair and non-discriminatory business environment for Chinese enterprises to invest in the United States,” Guo told reporters.
Questions remain, however. U.S. law requires a clean break from Chinese control, but White House officials have already confirmed that ByteDance will lease the technology to the new U.S. entity. Critics argue that this could leave Beijing with lasting influence over the app.
Trump allies such as Oracle co-founder Larry Ellison and Rupert Murdoch are among the investors. Their involvement has fueled questions about whether political or business interests could shape TikTok’s direction.
What People Are Saying
President Donald Trump told reporters in the Oval Office: “I had a very good talk with President Xi [Jinping]—a lot of respect for him. Hopefully, he has a lot of respect for me, too. And we talked about TikTok and other things, but we talked about TikTok and he gave us the go-ahead.”
Michael Sobolik, a senior fellow at the Hudson Institute, told Newsweek: “Monitoring the algorithm isn’t the same as controlling it. Based on information White House officials have already confirmed, ByteDance will lease the algorithm—which means they will still own it, and Beijing will still be able to control it. That’s a bad deal. It doesn’t comply with the law, and it leaves Americans vulnerable to CCP propaganda.”
What Happens Next
The agreement now depends on how both governments implement it in practice. China’s regulatory approval will be required, and U.S. lawmakers are likely to closely monitor whether the final terms meet the divestment law requirements.
