US-China Set to Finalize TikTok Deal in Korea
The United States and China are poised to finalize a high-profile deal concerning TikTok, according to US Treasury Secretary Scott Bessent. Following preliminary agreements reached last month in Madrid, the transaction is scheduled to be consummated by Presidents Donald Trump and Xi Jinping this Thursday in Korea. Bessent, speaking on CBS’ Face the Nation, confirmed that all outstanding details have been resolved, emphasizing that his role was to secure Chinese approval for the transaction, which he stated was successfully achieved in recent days.
Deal Structure and Oversight of TikTok US Operations
Under the terms of an executive order signed by President Trump, TikTok’s operations in the United States—including its recommendation algorithm, source code, and content moderation—will be governed by a newly formed board of directors. Oracle, led by Trump ally Larry Ellison, will assume responsibility for security operations. Additional investors in the joint venture reportedly include Fox Corporation, Andreessen Horowitz, and Silver Lake Management. Fox’s involvement has been seemingly confirmed by President Trump, further signaling the strategic nature of the partnership.
Trade Negotiations and Broader US-China Relations
Bessent delivered these remarks from Kuala Lumpur, Malaysia, where US and Chinese trade negotiators also announced progress on broader trade issues. Discussions included tariff frameworks and rare earth mineral export controls, critical components in semiconductor and technology manufacturing. US trade negotiator Jamieson Greer noted that the talks covered an extension of the existing trade truce and detailed negotiations on rare earth minerals, though specifics remain undisclosed.
“We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics,” Greer said.
Context and Implications for Technology and Trade
President Trump had previously extended deadlines requiring ByteDance, TikTok’s Chinese parent company, to divest its US operations or face a ban. This new deal aims to mitigate national security concerns by placing critical components of TikTok’s US operations under American oversight. The arrangement reflects a broader strategic effort by both countries to stabilize economic relations amid ongoing geopolitical tensions, balancing technology security with trade cooperation.
FinOracleAI — Market View
The imminent finalization of the TikTok deal marks a significant milestone in US-China technology and trade relations. By transferring operational control of TikTok’s US activities to a consortium including Oracle and Fox, the deal addresses national security concerns while maintaining market access.
- Opportunities: Stabilizes US-China tech cooperation and reduces risk of TikTok ban.
- Risks: Potential regulatory hurdles and ongoing geopolitical tensions could affect implementation.
- Sets precedent for future cross-border technology agreements.
- May influence rare earth mineral trade policies critical to tech manufacturing.
Impact: This agreement could ease US-China tensions in technology sectors, providing clarity and security assurances to investors and users alike. However, careful monitoring of regulatory compliance and geopolitical developments remains essential.
