China approves TikTok deal, clearing path for U.S. ownership transfer and algorithm retraining

After many months of negotiations, political wrangling, and back-and-forth between Washington and Beijing, China has finally approved the long-delayed agreement for the transfer of TikTok’s U.S. operations. Reuters reported on Thursday that U.S. Treasury Secretary Scott Bessent confirmed the move, saying he expects the deal to progress “in the coming weeks and months,” though he declined to share further details.

“In Kuala Lumpur, we finalised 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 following President Donald Trump’s meeting with Chinese leader Xi Jinping.

“China has approved the transfer agreement for the short video app TikTok, U.S. Treasury Secretary Scott Bessent said on Thursday, adding that he expects it to move forward in the coming weeks and months, but giving no other details,” Reuters reported.

China Approves TikTok Sale to U.S. Consortium — What Happens Next?

China’s Commerce Ministry released a statement the same day, saying it would “properly handle TikTok-related issues with the United States.” The approval marks a major step toward resolving one of the most high-profile tech disputes between the two countries — one that’s kept the future of TikTok, used by more than 170 million Americans, hanging in uncertainty for over 18 months.

At the heart of the deal is the U.S. government’s demand that ByteDance, TikTok’s China-based parent company, sell the app’s American operations. The mandate stems from a 2024 law that required ByteDance to divest TikTok’s U.S. assets by January 2025 or face a shutdown.

Trump signed an executive order on September 25 declaring that the proposed sale — involving a consortium of U.S. and global investors — meets the national security standards set by Congress. The order gave the group 120 days to complete the transaction and postponed enforcement of the law until January 20.

Under the agreement, TikTok’s algorithm will be retrained and monitored by the new U.S.-based company’s security partners. Operation of the algorithm will be under the full control of the new entity, ensuring that content recommendations and data management align with American oversight standards.

ByteDance will retain less than a 20 percent stake in TikTok U.S., a structure crafted to comply with the law’s requirement that the Chinese company relinquish control. The new entity’s board will include seven members — six Americans and one appointed by ByteDance — balancing governance with national security concerns.

Still, the deal isn’t free from scrutiny. Representative John Moolenaar, chair of the House Select Committee on China, warned earlier this month that any licensing arrangement allowing continued use of TikTok’s algorithm could raise “serious concerns.” His comments reflect ongoing skepticism in Washington about whether any structure involving ByteDance can fully eliminate security risks.

TikTok and ByteDance have yet to comment on the approval, but the move signals the beginning of what could be the final phase in a drawn-out geopolitical and corporate saga — one that’s seen the social media giant caught in the middle of two superpowers wrestling for digital control and trust.