Sep
The Biden administration has indicated that a long-awaited agreement with TikTok may be signed in the coming days, potentially reshaping how the app operates in the United States and addressing concerns over Chinese influence on the platform. While U.S. officials are presenting the move as a breakthrough, questions remain about Beijing’s position and the actual scope of the deal.
A Push for a U.S.-Centered Structure
According to the White House, the deal would establish a new joint venture to manage TikTok’s American operations. The majority of ownership in this entity is expected to be held by U.S. investors, a step designed to limit the strategic role of the platform’s Beijing-based parent company, ByteDance.
Reports suggest that the restructured company would be governed by a seven-member board composed entirely of American nationals. Among the rumored names are Oracle co-founder Larry Ellison, Dell Technologies CEO Michael Dell, and media executive Lachlan Murdoch. ByteDance, however, would still retain the right to nominate one representative to the board. Importantly, the U.S. government itself would not occupy a board seat, signaling a desire to keep the structure in the private sector while still safeguarding national security interests.
The Algorithm Question
One of the thorniest issues has been control of TikTok’s powerful recommendation algorithm. Instead of forcing a full transfer of intellectual property, the U.S. arrangement reportedly allows TikTok to license the algorithm from ByteDance. Oracle would then be tasked with rebuilding and operating a distinct U.S.-based version of that technology for American users.
This “license-and-rebuild” approach is being presented as a compromise: it avoids stripping ByteDance of its most valuable asset while still granting U.S. regulators oversight of how content is distributed domestically. Whether this technical solution will satisfy critics of TikTok’s data practices remains to be seen.
Financial Stakes
The agreement may also include a sizable payment from participating investors, possibly running into the billions, which would serve as compensation to the U.S. government. The financial component highlights the high value placed on securing TikTok’s continued presence in America, where the app counts over 150 million active users.
China’s Silence and Potential Pushback
What remains uncertain is how the Chinese government will react. Thus far, Beijing has avoided endorsing any of the proposed terms, and state media has emphasized the need to protect Chinese innovation and corporate sovereignty. Earlier talks were described as “constructive,” but Chinese officials continue to stress that their companies must be treated fairly in global markets.
ByteDance itself has also offered only vague statements about the timeline, hinting that additional time may be needed to sort through legal and commercial details. This ambiguity fuels skepticism over whether the deal can realistically be finalized within the week, as the White House suggests.
Implications for the U.S. Tech Landscape
If the agreement does move forward, it would represent one of the most significant attempts by the U.S. to restructure a major foreign-owned tech platform for national security reasons. It could serve as a precedent for how Washington deals with other applications seen as vulnerable to outside influence.
For creators and businesses that rely heavily on TikTok, the deal would provide some relief by reducing the likelihood of an outright ban. At the same time, the uncertainty surrounding the platform’s future could encourage brands to diversify their social strategies, reinforcing the dominance of competitors such as Instagram Reels and YouTube Shorts.
Conclusion
While the White House is framing the expected announcement as a decisive step, the situation is far from settled. The success of this plan hinges not only on corporate restructuring and U.S. investor involvement, but also on Beijing’s willingness to accept the arrangement. Until that piece falls into place, the prospect of a stable, long-term solution for TikTok in America remains fragile.
For now, the eyes of both policymakers and millions of TikTok users are fixed on the week ahead—waiting to see if promises of a signed deal become reality or fade into yet another round of geopolitical negotiations.
