Treasury Secretary Scott Bessent confirmed that the highly anticipated TikTok deal will be finalized on Thursday. This agreement was initially announced last month and will be consummated during a meeting between President Trump and Chinese President Xi Jinping at the Asia Pacific Economic Cooperation summit in South Korea.
TikTok Deal Overview
- Participants: President Trump and Chinese President Xi Jinping
- Date of Finalization: Thursday
- Location: South Korea
Details of the Agreement
During an appearance on “Face the Nation,” Bessent stated that the agreement was reached following discussions in Madrid. The specifics of the transaction have not been disclosed completely. However, Bessent emphasized that his role was to ensure approval from the Chinese side.
President Trump had set the stage for this deal with an executive order last month. This order aimed to allow TikTok to continue operating in the U.S. under a new corporate arrangement that includes American investors. The deal represents a “qualified divestiture,” a requirement from a bipartisan law enacted in April 2024. This law mandated that TikTok’s parent company, based in China, divest or face a potential ban.
Implications for TikTok’s Structure
The White House has outlined plans to create a U.S.-based joint venture. This new entity will have a majority ownership by American investors with an American-led board of directors. ByteDance, TikTok’s parent company, along with its affiliates, will hold less than 20% of this joint venture.
Company Oracle is reported to be part of the consortium of American investors involved in this new structure. Notably, Oracle was co-founded by Larry Ellison, whose family has significant holdings in Paramount Skydance, the parent company of CBS.
Concerns from U.S. Officials
Republican Representative John Moolenaar from Michigan expressed skepticism regarding the deal. He voiced concerns about the continued involvement of Chinese entities, highlighting the potential for leveraging their position to gain advantages.
Moolenaar stated, “As long as the Chinese are involved, there’s reason for distrust.” He reiterated his apprehension regarding ByteDance’s minority stake in the new venture, citing the relationship between Chinese companies and the Communist Party.
Despite these concerns, Moolenaar acknowledged the importance of adhering to the legal framework established by Congress. He expressed trust that the administration is striving to make TikTok accessible to American users while complying with legislative requirements.
The negotiations surrounding TikTok’s future continue to attract significant attention as the finalization date approaches.
