Recent developments suggest that TikTok’s technology landscape might undergo significant changes as China signals potential approval for a US sale. The possibility of a US-controlled version of TikTok, complete with a licensed Chinese-owned algorithm, is gaining traction following a meeting between President Donald Trump and Chinese President Xi Jinping.
While neither leader confirmed China’s agreement to Trump’s proposed deal, an announcement from the Chinese Commerce Ministry hinted at a resolution of TikTok-related issues with the United States. US Treasury Secretary Scott Bessent indicated that the TikTok agreement is nearing finalization, pending Chinese approval. The proposed terms, including ByteDance retaining a 20 percent ownership stake and keeping the algorithm, are seen as advantageous to China.
However, with no accord reached during the meeting, it appears that China may have reservations about the deal. The reluctance to cede control of TikTok, which has surged in popularity in the US, raises questions about the alignment of Beijing’s interests with the US administration’s intentions to divest the app’s US operations.
ByteDance’s silence amidst the negotiations underscores the complexity of the situation. The tech industry awaits further details to gauge the implications of the potential ownership transition on TikTok’s future technology trajectory.
Source: Ars Technica