The United States and China, on September 15, reached a framework deal that would let TikTok continue operating in the US, addressing Washington’s concerns over data security and Chinese influence, US treasury secretary Scott Bessent announced following trade talks in Spain over the weekend.
US President Donald Trump and Chinese leader Xi Jinping are scheduled to speak on Friday to finalise the deal, which Bessent characterised as an agreement between “two private parties” that would place the social media app under US-controlled ownership.
The deal would shift oversight of TikTok’s US operations away from its Beijing-based parent company, ByteDance, and into a structure more acceptable to Washington regulators.
As part of the deal, Oracle is emerging as a central player. The US software giant has been identified as one of the companies tasked with enabling TikTok to continue its American operations, CBS News reported.
While the precise contours of Oracle’s role remain unclear, it is expected to involve providing technical infrastructure, handling US user data and potentially acquiring a stake in the app’s US business.
The deal comes against a deadline of September 17, set by the US government for TikTok to resolve its ownership structure. Officials have signalled the possibility of extending the deadline by up to 90 days to finalise details of the agreement. However, critical questions about the fate of ByteDance’s ownership stake, the transparency of TikTok’s recommendation algorithm and the mechanisms US regulators will use to enforce compliance remain unresolved.
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