A central question to TikTok's potential shutdown saga has been whether the popular social video platform would keep its algorithm — the secret sauce that powers its addictive video feed — after it's divested from Chinese parent company ByteDance.
Now, it appears that it can. Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, told reporters in Madrid Monday there was consensus on authorization of “the use of intellectual property rights such as (TikTok’s) algorithm” —
a main sticking point in the deal.
The sides also agreed on entrusting a partner with handling U.S. user data and content security, he said. But while China has agreed that a divested TikTok could use its algorithm, it’s uncertain how that would work.
Little is known about the actual deal in the works, including what companies are involved and whether the United States would have a stake in TikTok. Li Chenggang, China’s international trade representative, said the two sides have reached “basic framework consensus” to properly solve TikTok-related issues in a cooperative way, reduce investment barriers and promote related economic and trade cooperation. The sides now have until Dec. 16 to hash out the details, following the latest deadline extension by the Trump administration.
U.S. Treasury Secretary Scott Bessent said in a press conference this week after the latest round of trade talks between the world’s top two economies concluded in Madrid that U.S. President Donald Trump and Chinese President Xi Jinping would speak Friday to possibly finalize the deal. He said the objective of the deal would be to switch to American ownership.
He did not disclose the terms of the deal, saying that it is between two private parties, but added that “the commercial terms have been agreed upon.”
Oracle Corp. has been floated as a likely buyer for the platform. Representatives for the company did not immediately respond to a message for comment on Monday and Tuesday.
In Madrid, U.S. Trade Representative Jamieson Greer said the team was “very focused on TikTok and making sure that it was a deal that is fair for the Chinese,” but also “completely respects U.S. national security concerns.”
The sides also agreed on entrusting a partner with handling U.S. user data and content security, he said.
At arguments in the Supreme Court in January, a lawyer for TikTok and its Chinese parent company ByteDance Ltd. told the justices how difficult it would be to consummate a deal that complies with the TikTok law, especially since Chinese law restricts the sale of the proprietary algorithm that has made the social media platform wildly successful.
American officials have previously warned the algorithm that fuels what users see on the app is vulnerable to manipulation by Chinese authorities, who can use it to shape content on the platform in a way that’s difficult to detect.
TikTok has said that the U.S. never presented evidence that China has attempted to manipulate content on its U.S. platform
The House Select Committee on China says any deal between Beijing and Washington must comply with a law requiring TikTok to be divested from its Chinese ownership or face a ban in the U.S.
“It wouldn’t be in compliance if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance," said a committee spokesperson.
Rep. Raja Krishnamoorthi, the committee’s ranking Democrat, said he wants information on the ownership structure.
“Underpinning all of our concerns is the Chinese Communist Party’s access to American data,” he said. The social media platform needs user data to determine what to show users, and Krishnamoorthi said he would be open to discussions if the app is protected from Beijing’s infiltration.
Though he has no clear legal basis to do so, Trump has continued to extend the deadline for TikTok to avoid a ban in the U.S. The latest extension came Tuesday, a day before the last deadline was set to expire.
This gives his administration more time to broker a deal to bring the social media platform under American ownership.
It is not clear how many times Trump can keep extending the ban as the government continues to try to negotiate a deal for TikTok, which is owned by China’s ByteDance. While there is no clear legal basis for the extensions, so far, there have been no legal challenges against the administration. Trump has amassed more than 15 million followers on TikTok since he joined last year, and he has credited the trendsetting platform with helping him gain traction among young voters. He said in January that he has a “warm spot for TikTok.”
TikTok did not immediately respond to a message for comment on Tuesday.
For now, TikTok continues to function for its 170 million users in the U.S. Tech giants Apple, Google and Oracle were persuaded to continue to offer and support the app, on the promise that Trump’s Justice Department would not use the law to seek potentially steep fines against them.
Americans are even more closely divided on what to do about TikTok than they were two years ago.
A recent Pew Research Center survey found that about one-third of Americans said they supported a TikTok ban, down from 50% in March 2023. Roughly one-third said they would oppose a ban, and a similar percentage said they weren’t sure.
Among those who said they supported banning the social media platform, about 8 in 10 cited concerns over users’ data security being at risk as a major factor in their decision, according to the report.
