TikTok’s future in the US: How Trump and Xi are shaping the new ownership deal

TikTok’s future in the US

A proposal to keep TikTok operational in the US would place majority ownership in a US consortium of venture capital firms, private equity firms, and technology companies. Sources said the group will hold about 80% of the firm, and Chinese investors will hold the rest. Getting in on the expected investors are Oracle, Andreessen Horowitz, and Silver Lake, and the new firm will be run by a US-majority board, CNN said.

The proposal was negotiated in Madrid this week between US and Chinese negotiators and is a replica of an initial proposal presented to Trump in April. The talks were derailed after Trump made public a broad range of tariffs on Chinese goods, but later resumed after tariffs had been cut. Both nations are going to seal the TikTok deal on a planned telephone call between Trump and Xi Jinping on Friday, and hence it is a moment of maximum significance in current US-China relations.

National security has been a central point of discussion. The administration of Trump ensured that the agreement touched on threats to data privacy and Chinese dominance. The new agreement comes after a law passed during Joe Biden's presidency that caps China's stake in TikTok American assets at 20%. US Treasury Secretary Scott Bessent said the deal in its final version ensures security by limiting activities that can weaken American interests.

Oracle executive chairman Larry Ellison has long been closely involved with TikTok's US business. Oracle is already home to TikTok's US data, and Ellison nearly closed a deal to acquire TikTok's assets in Trump's first term. Ellison openly supported by Trump, who painted him as a respected leader to shield the platform. Ellison's involvement highlights the tech sector's central contribution to rewriting TikTok's future within the US market.

Trump constantly delayed the deadline to enforce a ban on TikTok to give negotiations more time. Without Tuesday's executive order, TikTok would have ceased to function this week in America. The officials add that the deal is also a move towards arranging a long-planned meeting between Trump and Xi. Trump's TikTok standoff has been both a matter of national security and a source of US prestige in trade and tech combat with China.

The deal's terms are still under negotiation, and officials caution that they may change before the agreement is signed. If approved, TikTok will stay in the US with majority-US ownership, with foreign investors holding only a minority stake. Users and investors are watching closely, as the outcome will not only determine the fate of TikTok but also whether Washington and Beijing can establish a framework for balancing technology, politics, and economic competition.