A possible shutdown of TikTok in the United States has raised questions about whether the social media platform would retain its algorithm if separated from its Chinese parent company, ByteDance. Recent developments suggest that it will. Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, said in Madrid that there was agreement on allowing “the use of intellectual property rights such as (TikTok’s) algorithm.” This aspect had been a major point of contention in negotiations.
Both sides also agreed to assign a partner to manage U.S. user data and content security, though details remain unclear. The specific companies involved and whether the U.S. government would have a stake in TikTok have not been disclosed. Li Chenggang, China’s international trade representative, stated that both countries had reached a “basic framework consensus” to address TikTok-related issues cooperatively and promote economic and trade cooperation.
The Trump administration has extended the deadline for finalizing an agreement until December 16, giving negotiators more time to reach a resolution.
U.S. Treasury Secretary Scott Bessent told reporters after recent trade talks in Madrid that President Donald Trump and Chinese President Xi Jinping are expected to speak soon about possibly finalizing the deal. Bessent indicated that the goal is to shift TikTok to American ownership but did not provide further details on the terms, stating only that “the commercial terms have been agreed upon.”
Oracle Corp. has been mentioned as a potential buyer for TikTok, but company representatives have not commented publicly.
U.S. Trade Representative Jamieson Greer emphasized efforts to ensure any deal is fair for China while also addressing U.S. national security concerns.
At Supreme Court arguments earlier this year, lawyers for TikTok and ByteDance explained the challenges of structuring a deal that complies with U.S. law due to Chinese restrictions on selling proprietary technology like TikTok’s algorithm.
American officials have expressed concern that TikTok’s algorithm could be manipulated by Chinese authorities without detection, although TikTok has stated there is no evidence such manipulation has occurred on its U.S. platform.
The House Select Committee on China insists any agreement must comply with laws requiring divestment from Chinese ownership or face a ban in the United States. A committee spokesperson said: “It wouldn’t be in compliance if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance.”
Rep. Raja Krishnamoorthi highlighted concerns about data privacy: “Underpinning all of our concerns is the Chinese Communist Party’s access to American data.” He added he would consider discussions if protections against Beijing’s influence are ensured.
President Trump has repeatedly extended deadlines for a possible ban despite lacking clear legal authority for these extensions; so far, there have been no legal challenges against this approach. Trump himself has gained over 15 million followers on TikTok since joining last year and credited the app with helping him connect with younger voters.
For now, TikTok remains available to its 170 million users in the U.S., as companies like Apple, Google and Oracle continue supporting it under assurances from the Justice Department regarding enforcement actions.
Public opinion on banning TikTok remains divided among Americans according to recent surveys by Pew Research Center; support for a ban has declined since March 2023, with roughly one-third supporting or opposing a ban and another third undecided.
