Donald Trump’s return to the global stage has revived one of tech’s longest-running dramas, the future of TikTok in the United States. During his diplomatic tour of Asia, Trump is expected to finalise what officials are calling a “last step” in the app’s drawn-out survival story, a deal that could finally settle the question of whether TikTok stays or goes.
For months, Washington has been locked in a tug-of-war with Beijing over the popular video app, threatening to ban it unless its U.S. operations were sold to domestic investors. That deadline has come and gone more than once, but now, Treasury Secretary Scott Bessent says the two countries have reached what he calls a “final deal.” Trump and Chinese President Xi Jinping are expected to seal it later this week on Thursday when they meet in South Korea.
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The agreement could end one of the most visible symbols of U.S.–China tech tension, a battle that began with fears over national security and spiralled into a debate about digital sovereignty. Under the deal’s framework, American investors and companies like Oracle and Fox Corp will oversee TikTok’s U.S. arm, controlling its algorithm, moderation policies, and board structure. The arrangement, negotiated over months of back-and-forth, is designed to ensure the app operates independently of Beijing’s influence while keeping its massive American audience intact.
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But while politicians have been negotiating, TikTok’s team hasn’t been idle. In July, reports surfaced that the company was preparing to launch a separate version of the app, internally dubbed “M2,” built to comply with U.S. ownership laws. The launch was rumoured for September, yet as of now, no updates or test builds have appeared in app stores. It’s uncertain whether TikTok is still moving forward with launching M2, or if it was just a backup plan incase talks collapsed.
A new TikTok app exclusively for the U.S. audience is coming
TikTok’s survival in the U.S. may now hinge on a brand-new app and a last-minute sale, if regulators, lawmakers, and Beijing all say yes.
All this unfolds as the short-form video space becomes more competitive. Meta’s Reels, YouTube’s Shorts, and Snapchat’s Spotlight have all grown rapidly while TikTok’s fate remains uncertain. YouTube Shorts alone surpassed 200 billion daily views earlier this year, a number that would have seemed impossible when TikTok first exploded onto the scene. If the app were to face another regulatory setback, its rivals are ready to capture disillusioned creators and advertisers looking for stability.
Beyond TikTok, the U.S. and China have also drafted a broader trade framework that could ease one of the world’s most strained economic relationships. The U.S. is expected to pause plans for sweeping tariffs on Chinese imports set to take effect in November, while China may roll back its export restrictions on rare earth minerals, vital components for semiconductors, batteries, and other tech manufacturing. It’s a fragile truce, but one that could cool years of economic friction.
Still, this so-called “final deal” isn’t final until it’s signed. The framework leaves unanswered questions about data privacy, algorithm oversight, and how much autonomy ByteDance, TikTok’s parent company, will retain. Yet for the millions of creators and users who depend on TikTok daily, there’s cautious hope that this time, the clock won’t run out.
If the deal holds, it could mark the end of one of the most complex battles in digital tech history, over who controls the digital stage where billions now spend their time.
Trump says billionaires are ready to buy TikTok — but ByteDance still has to say yes
The current deadline is September 17, a hard cutoff unless Trump delays again.
