China Calls US-TikTok Ownership Deal a “Win-Win” as US Extends Deadline for Divestment
By: Itoro Etukudo
Framework agreement reached in Madrid as Trump delays TikTok ban until December; key issues like algorithm control and Chinese share retained under review.
China has publicly praised a tentative agreement with the United States to restructure TikTok’s U.S. operations, calling the deal a “win-win” outcome.
The endorsement appeared in a commentary in People’s Daily, under the pen name “Zhong Sheng,” saying the consensus was built on “mutual respect, peaceful coexistence, and win-win cooperation.”
The deal, negotiated in Madrid would transfer control of TikTok’s U.S. operations from ByteDance, its China-based parent, to an American-led entity. Key U.S. investors expected to be involved include Oracle, Silver Lake, and Andreessen Horowitz. Chinese ownership would be reduced to below 20 percent in the restructured business.
A major sticking point remains the app’s recommendation algorithm, widely viewed as ByteDance’s most valuable asset. Under the framework, Beijing has agreed to license intellectual property (including algorithm access), while U.S. engineers are reported to be preparing a separate version for U.S. users.
To allow time for finalization, President Donald Trump has signed an order extending the deadline for TikTok’s required divestment to December 16, 2025, the fourth of such delay. The original deadline would have fallen earlier.
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are expected to take part in a call between Trump and President Xi Jinping this Friday to confirm final details of the agreement.
Source: The Economic Times
