China Approves TikTok Transfer Agreement, US Official Confirms
US Treasury Secretary Scott Bessent confirmed on Thursday that China has formally approved the transfer agreement for TikTok’s US operations, paving the way for the deal to proceed in the coming months.
Key Developments
- China grants official approval for TikTok transfer agreement
- Deal expected to finalize within weeks and months
- ByteDance to retain less than 20% stake in US operations
- US-imposed deadline set for January 2026
“In Kuala Lumpur, we finalized the TikTok agreement in terms of getting Chinese approval, and I would expect that would go forward in the coming weeks and months, and we’ll finally see a resolution to that,” Bessent told Fox Business Network’s “Mornings with Maria”.
The breakthrough follows meetings between US President Donald Trump and Chinese leader Xi Jinping. China’s commerce ministry confirmed it would “work with the United States to properly address issues related to TikTok.”
Background and Timeline
TikTok, owned by China-based ByteDance, boasts 170 million American users. In 2024, Congress passed legislation requiring ByteDance to divest TikTok’s US assets by January 2025, though extensions were granted.
On September 25, President Trump signed an executive order approving the sale to a consortium of US and global investors, stating it met security requirements. The administration provided ByteDance 120 days to complete the transaction, with full implementation scheduled for January 2026.
Agreement Details
Under the terms, TikTok’s algorithm will be retrained and monitored by US security partners. ByteDance will appoint only one of seven board members for TikTok’s US operations, with American citizens occupying the remaining six positions.
The Chinese company would hold less than 20% stake in TikTok’s US operations. Failure to comply with the law by the deadline would result in the app being shut down in the United States.
However, US Representative John Moolenaar expressed concerns this month, telling Reuters that a licensing agreement for TikTok’s algorithm would raise “serious concerns” about national security.
