President Trump confirmed progress on a high-stakes TikTok deal as Beijing made it clear the app’s U.S. version will still run on Chinese-developed algorithm technology, despite long-standing national security concerns.
The Chinese government’s public stance arrives just as U.S. and Chinese officials finalize a framework to avoid banning the popular video platform, which boasts 172 million American users. The agreement would create a new U.S.-based company valued at up to $50 billion, giving American investors a majority stake, while ByteDance, TikTok’s parent company based in China, retains a 19.9% stake. Security officials in Washington have long raised alarms about the app’s recommendation engine, warning it could be used to spread propaganda or collect sensitive data.
Former President Donald Trump, who delayed TikTok’s ban through executive orders, is set to speak with Chinese President Xi Jinping on Friday to finalize the arrangement. The proposed structure would enable U.S. investors, such as billionaire Jeff Yass of Susquehanna International and Bill Ford of General Atlantic Partners, to take control of TikTok’s American operations.