After months of contentious negotiations and growing security concerns, the United States and China reached a surprising framework deal in September 2025 that grants American investors significant control over TikTok‘s US operations. The agreement, which emerged following high-level trade talks in Spain, establishes a consortium of US investors who will take ownership of the platform’s American business division, addressing longstanding worries about Chinese access to user data.
Treasury Secretary Scott Bessent, who spearheaded the negotiations on behalf of the US government, emphasized that the arrangement would place American user information under domestic control. “This framework guarantees that the data of millions of Americans remains protected by US laws and oversight,” Bessent stated during the announcement in Washington.
This landmark agreement ensures American data stays under American control, safeguarded by our laws and regulatory framework.
President Donald Trump publicly endorsed the deal, framing it as a victory for national security while preserving access to the popular social media platform. The agreement gives US-based investors substantial governance rights, allowing them significant influence over business decisions affecting the American market. This restructuring aims to prevent TikTok’s user information from being transferred to Chinese servers or accessed by unauthorized personnel. The arrangement bears similarities to sync deals that have become increasingly important in the entertainment industry, where rights and usage permissions are carefully negotiated between parties. Artists and content creators on the platform could benefit from improved royalty structures similar to those offered by platforms like Tidal and Pandora, where playlist placement can significantly boost visibility and earnings.
Despite these safeguards, security experts and lawmakers have expressed skepticism about whether the deal truly severs Chinese influence. The Chinese government maintains partial ownership in TikTok’s global parent company, potentially allowing for indirect control through technical or data-sharing arrangements. Senator Mark Warner noted, “We’ll need rigorous oversight to confirm this framework actually delivers the security protections it promises.” A major concern remains that ByteDance has not yet divested from TikTok despite the legal requirements passed by Congress last year.
The deal establishes a precedent for how the United States might handle foreign technology companies when national security concerns arise. Under the agreement, American investors will oversee compliance mechanisms to enforce data privacy commitments, though questions remain about implementation details.
As one analyst observed, the arrangement represents an uneasy compromise that allows TikTok to continue operating in the US market while attempting to address the most pressing security concerns.
