• The US and China have reached a framework deal allowing TikTok to continue operations in the US.
• ByteDance’s ownership in TikTok will be reduced to below 20%, complying with US national security laws.
• President Trump and Xi Jinping are set to finalize the deal in a call scheduled for Friday.
• Oracle and other American investors will take the reins of TikTok's US operations soon.
• The deadline for TikTok's divestiture has been extended to December 16, 2025.

The U.S. and China have reached a critical framework agreement to allow TikTok to continue operating in the United States, with the app's ownership transitioning from the Chinese company ByteDance to a consortium of American investors, including Oracle, Andreessen Horowitz, and Silver Lake Management. U.S. Treasury Secretary Scott Bessent confirmed the agreement following two days of negotiations in Madrid in which both countries aimed to resolve longstanding disputes and enhance bilateral relations, according to IndiaTimes, CBS News, and Los Angeles Times.

Significantly, ByteDance's stake in TikTok will diminish to less than 20%, which aligns with legislation mandating the divestment due to national security concerns. President Trump announced an extension for the deal, pushing the deadline until December 16, 2025, marking the fourth time the administration has delayed enforcement of a law aimed at banning the app, as reported by BBC, Reuters, and NPR.

Under the terms of the agreement, primary control will shift to the new investor consortium, while retaining some Chinese influence through licensing agreements for TikTok's recommendation algorithms. This aspect remains a contentious issue, as U.S. officials emphasize that complete operational independence from ByteDance is necessary for compliance with national security regulations, according to analysts from SCMP and Reuters.

Trump is set to discuss the finalized details with Xi Jinping in a crucial phone call, which both sides view as pivotal not only for TikTok's future but also for broader U.S.-China relations. The discussions come amidst a backdrop of trade tensions, with allegations that TikTok could be used for data collection by the Chinese government against American citizens, reported by The Hill, Reuters, and Al Jazeera.

Support for TikTok among American users has reportedly decreased calls for a ban amid ongoing negotiations, suggesting the political and business implications of maintaining such a popular platform in the U.S. market are favorable for both sides, according to the Los Angeles Times and IndiaTimes.