U.S. Treasury Confirms Chinese Approval of TikTok Sale Agreement

WASHINGTON, Oct. 30, 2025 — U.S. Treasury Secretary Scott Bessent announced that China has approved the long-awaited transfer deal for TikTok, marking a major step toward resolving one of the most contentious technology disputes between Washington and Beijing in recent years.

Bessent confirmed the news in an interview with Fox Business Network, saying the agreement received Chinese approval during talks in Kuala Lumpur. “We finalised the TikTok agreement in terms of getting Chinese approval, and I would expect that would go forward in the coming weeks and months,” he said, adding that the decision could bring “a final resolution” to the long-running standoff over the short-video platform’s U.S. operations.

TikTok Transfer Marks Progress in U.S.–China Tech Relations

The Chinese Commerce Ministry released a statement earlier on Thursday acknowledging that China would “properly handle TikTok-related issues” with the United States, signalling Beijing’s willingness to cooperate on a deal that has faced years of political and legal scrutiny.

TikTok, owned by Beijing-based ByteDance Ltd., has not yet issued an official comment on the development.

Long Road to the TikTok Sale Deadline

TikTok’s fate in the U.S. has been uncertain for more than 18 months, following a 2024 U.S. law requiring ByteDance to divest TikTok’s American assets by January 2025 or face a nationwide ban. The legislation was passed amid rising concerns that the app’s Chinese ownership could pose a national-security risk due to potential data-sharing with Beijing — claims TikTok has repeatedly denied.

Earlier this year, President Donald Trump signed an executive order declaring that the proposed sale of TikTok’s U.S. operations to a consortium of American and international investors met the law’s security requirements. The order, issued on September 25, gave investors 120 days to finalize the transaction and delayed enforcement of the law until January 20.

Algorithm Control and Security Oversight

Under the executive order, TikTok’s powerful recommendation algorithm — the core of its global success — will be retrained and monitored by U.S. security partners. The algorithm’s operation will be placed under the control of a new U.S.-based joint venture, ensuring compliance with American data-protection and oversight standards.

According to the agreement terms, ByteDance will hold less than 20% of the new entity, and it will appoint one of seven board members, with the other six seats held by American investors. This structure satisfies legal requirements aimed at separating the app’s U.S. business from its Chinese parent company.

U.S. Lawmakers Raise Concerns Over Algorithm Licensing

Despite progress, some lawmakers remain skeptical about potential loopholes. Representative John Moolenaar, chair of the House Select Committee on China, recently warned that any licensing deal allowing continued use of TikTok’s algorithm could raise “serious concerns” about the effectiveness of the divestment.

Analysts say such concerns highlight the broader challenge of decoupling U.S. and Chinese interests in global tech supply chains while maintaining business continuity for TikTok’s 170 million U.S. users.

Broader U.S.–China Economic Developments

In a related announcement, President Trump said he reached an agreement with Chinese President Xi Jinping to reduce tariffs on Chinese imports from 57% to 47%, framing the move as part of a “reset” in economic relations following months of trade tensions.

The dual announcements — on TikTok’s ownership and trade tariffs — mark one of the most significant steps toward stabilizing U.S.–China relations since 2023, when both countries intensified restrictions on technology exports and foreign investment.

What Comes Next for TikTok U.S.

With Chinese approval now secured, the next phase involves regulatory clearance and technical transition of TikTok’s U.S. assets to the new ownership structure. Treasury officials expect the process to move forward “in the coming weeks and months.”

Industry experts believe a finalized transfer would give TikTok a clearer regulatory path in the United States and could restore investor confidence after nearly two years of uncertainty surrounding its operations and potential ban.