Recent developments suggest that the future of TikTok in the United States seems to have been secured. It all came down to a negotiation tactic straight out of a business playbook. According to U.S. Treasury Secretary Scott Bessent, President Donald Trump’s willingness to let the wildly popular social media app “go dark” in the U.S. was the key factor that motivated China to finalize a deal for the app’s American operations.
Major progress in the deal to save TikTok for US users this week
For months, the fate of TikTok in the U.S. hung in the balance. The latest deadline extension for the ban was set for today, September 17. While negotiations dragged on, the core commercial terms of a deal had reportedly been in place since spring. The major sticking point, however, was the political will to get it done.
A recent report revealed that the U.S. and China have reached a framework for a definitive deal that would allow TikTok to secure its future for American users. President Donald Trump and China’s president Xi Jinping will agree on the final terms in a call on Friday. Meanwhile, there’s a new extension to the ban deadline in effect to allow time to finalize the deal.
Trump’s “go dark” plan for TikTok US was a winning strategy
But how did we suddenly get to this point after months without an agreement? Well, as reported by CNBC, Scott Bessent stated that Trump made it “clear that he would have been willing to let TikTok go dark,” putting national security ahead of any commercial interests. This firm stance, he said, was what “turned the tide” in the negotiations.
The full details of the final deal aren’t yet public. However, the deal could involve a series of agreements to guarantee the integrity of the American national security. Some sources claim that American investors will gain control over ByteDance’s Chinese algorithm, for example. TikTok’s algorithm recommendations were among the U.S. authorities’ main allegations.
So, the saga seems to be coming to a close. However, the names of the potential new U.S. owners have been floating around. Tech giant Oracle, which already handles some of TikTok’s web infrastructure, is reportedly one of the companies aiming for a deal to take over the app’s U.S. operations. The resolution of this issue could also mark a turning point in the broader trade relations between the U.S. and China.
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