What's happened
As of July 12, 2025, the US government, led by President Donald Trump, is close to finalizing a deal for the sale of TikTok's US operations. Discussions with China are expected to begin imminently. The deadline for ByteDance to divest TikTok's US assets has been extended to September 17, 2025, amid ongoing trade negotiations and national security concerns.
What's behind the headline?
TikTok Sale: A Complex Geopolitical Chessboard
The TikTok divestment saga is less about the app itself and more a proxy battleground for US-China trade and security tensions. While the US government cites national security concerns over data access and algorithm manipulation, the Chinese government leverages TikTok as a bargaining chip in broader trade negotiations.
The involvement of high-profile US investors like Oracle, Blackstone, and Andreessen Horowitz signals a strategic attempt to maintain US control over TikTok's lucrative market while placating security concerns. However, ByteDance's retention of a minority stake and control over core technologies complicates the deal's acceptance by US lawmakers and regulators.
President Trump's repeated deadline extensions and public optimism about a deal reflect political balancing acts: appeasing domestic calls for security while avoiding a complete ban that could alienate TikTok's vast US user base, especially younger voters.
The upcoming talks with China will be pivotal. Beijing's approval remains uncertain, hinging on broader trade concessions. The potential launch of US-only TikTok and CapCut apps indicates ByteDance's strategy to comply with US demands while preserving global operations.
For US users, the outcome will determine whether TikTok remains accessible and under what ownership structure. For investors and regulators, the deal's success or failure will set precedents for handling foreign tech ownership amid geopolitical rivalry.
Forecast
The deal will likely proceed but with compromises: a US-based majority ownership with Chinese minority stakes, accompanied by strict data governance and operational firewalls. However, the risk of further delays or political interference remains high, especially if trade negotiations falter. Users should prepare for a transition to new app versions and potential changes in content availability.
What the papers say
The South China Morning Post reported on July 8 that ByteDance is developing US-only versions of TikTok and CapCut, aiming for a September launch, while the current app would be shut down for US users by March 2026. This aligns with The Information's report cited by the Post, highlighting the strategic pivot to comply with US regulations. President Trump's statements, covered by multiple outlets including The Guardian and SBS on July 5, emphasize that the US "pretty much" has a deal and plans to start talks with China imminently. Trump acknowledged uncertainty about Beijing's approval but expressed optimism based on his relationship with President Xi Jinping.
The New York Post's Charles Gasparino (July 4) provides insight into the trade negotiation dynamics, noting that TikTok is a pawn in broader US-China trade talks, with China withholding approval until favorable trade terms are secured. This perspective contrasts with Trump's public optimism but explains the delays and complexities behind the scenes.
Gulf News (July 2) outlines the potential buyers, including Oracle, Blackstone, and Andreessen Horowitz, and alternative bids like The People's Bid for TikTok led by Frank McCourt. This diversity of interested parties underscores the high stakes and competitive nature of the sale.
The Independent (June 29) highlights skepticism about the timeline and Trump's history of setting two-week deadlines that often extend, adding nuance to the public narrative of imminent resolution.
Together, these sources paint a picture of a high-stakes geopolitical negotiation involving national security, trade policy, and the future of a major social media platform in the US market.
How we got here
US lawmakers passed a 2024 law requiring ByteDance to divest TikTok's US operations over national security fears. President Trump has extended the divestment deadline multiple times, seeking a buyer acceptable to both US and Chinese authorities. Previous deals stalled due to trade tensions and China's reluctance to approve sales involving TikTok's technology.
Go deeper
- What are the main concerns behind the TikTok sale in the US?
- Who are the potential buyers for TikTok's US operations?
- How might the TikTok deal affect US-China trade relations?
Common question
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What Does Trump's TikTok Deal Mean for Users and Businesses?
As the U.S. government moves closer to finalizing a deal for TikTok's sale, many users and businesses are left wondering how this will impact them. With ongoing discussions between the U.S. and China, the future of TikTok hangs in the balance. Here are some common questions and answers regarding the implications of this deal.
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What are the implications of the TikTok deal for U.S.-China relations?
The ongoing negotiations surrounding TikTok's potential sale have significant implications for U.S.-China relations. As President Trump announces progress towards a deal, many are left wondering how this will affect the app's future in the U.S. and what it means for the broader tech landscape. Below are some common questions and answers regarding this complex situation.
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