US Treasury Secretary Scott Bessent announced on Sunday that the details regarding the transfer of TikTok’s US operations to a new owner have been finalized between the US and China.
“We have reached a conclusive agreement regarding TikTok,” Bessent stated. said, during an appearance with Margaret Brennan on CBS’s Face the Nation. He referred to Donald Trump and China’s Xi Jinping, mentioning: “With discussions scheduled for Thursday in South Korea, the two leaders will convene in Madrid, and we believe all details have been finalized, which will complete the agreement.”
While Bessent did not share specifics of the transaction, he noted it is part of a larger trade deal framework that both nations will discuss when President Trump and President Xi Jinping meet in the coming days.
Bessent’s remarks followed President Trump’s signing of a presidential order on September 25th, which allowed for a new ownership agreement in the US involving a majority of US investors.
“I am not involved in the commercial details of this transaction,” Bessent remarked. “My focus was to secure approval from the Chinese side for the transaction, which I believe we have effectively achieved over the past two days.”
Barron Trump, President Trump’s 19-year-old son, proposed that the president nominate former social media producer Jack Advent as a director. President Trump has indicated that the new US investors include prominent conservative media figures like Rupert Murdoch and Larry Ellison.
During his first presidential term, Trump threatened to ban TikTok in 2020 in retaliation for China’s handling of the coronavirus pandemic.
Congress enacted a ban on the app during Trump’s administration, which was signed into law by Joe Biden in April 2024. The agreement was set to take effect on January 20, 2025, but was extended four times by Trump while his administration negotiated the ownership transfer.
The estimated value of this contract is $14 billion, with US and international investors expected to hold about 65% of the company’s shares, while ByteDance and Chinese investors will maintain less than 20%.
Trump’s Executive Order grants new investors, including six of the seven board seats, oversight of the app’s algorithms.
Trump arrived in Malaysia on Sunday to participate in the Association of Southeast Asian Nations summit as part of a five-day tour of the region, and a direct meeting between Trump and Xi is planned for Thursday.
The two leaders are expected to discuss U.S. agricultural exports, the trade balance, and issues related to the fentanyl crisis, which were cited as reasons for Trump’s 20% tariffs on Chinese imports.
Source: www.theguardian.com
