Almost…
The deal to “save” TikTok has been just around the corner for years. And yet, here we are again — waiting.
On Friday, President Donald Trump announced after a call with Chinese President Xi Jinping that the two had “made progress” on TikTok and that he “appreciate[s] the TikTok approval.”
But if you read Chinese state-run media, the story looked different. Xi didn’t confirm approval. Instead, he said the government “respects the wishes of the company” and supports a solution that aligns with Chinese laws and market rules.
ByteDance, TikTok’s Chinese parent company, didn’t clarify either. Its statement thanked both leaders for their “efforts to preserve TikTok in the United States” and promised to work within applicable laws to keep the app alive.
In other words: the TikTok deal remains elusive.
The Latest Shape of the Deal
Here’s what’s reportedly on the table now:
- A new app for TikTok’s U.S. users — still powered by ByteDance’s algorithm.
- U.S. investor control of TikTok U.S., with Oracle, Silver Lake, and Andreessen Horowitz involved.
- A multibillion-dollar payout for the Trump administration, framed as compensation for brokering the deal.
It’s a strange hybrid: part divestiture, part licensing arrangement, part political theater.
Trump’s Extension Strategy
This is the fourth time Trump has extended TikTok’s deadline to divest or face a federal ban. The new date: December.
Each extension keeps TikTok in limbo. Creators, advertisers, and users continue on as if nothing’s changed — but the sword of Damocles still hangs overhead.
For Trump, the extensions serve two purposes:
- They keep him in the spotlight as TikTok’s would-be savior.
- They maximize leverage in negotiations with both China and domestic investors.
It’s deal-making as spectacle, and TikTok is the stage.
China’s Careful Position
Beijing’s messaging has been cautious. It has two priorities:
- Protect ByteDance’s algorithm. China considers recommendation engines sensitive technology. Exporting it outright may not pass legal muster.
- Avoid humiliation. Any deal must be framed as a negotiation, not capitulation to U.S. demands.
That’s why Xi’s phrasing matters: “in line with market rules” and “conforms to Chinese laws.” It’s code for we’ll play, but on our terms.
ByteDance in the Middle
Caught between Washington and Beijing, ByteDance has little room to maneuver.
It needs to preserve access to the U.S. market — 170 million users and billions in ad revenue. But it also needs to comply with Chinese law, which could bar a full transfer of its algorithm.
The proposed solution — a new U.S. app licensed from ByteDance’s technology — is a compromise. But it’s a fragile one, and both sides can still derail it.
The Politics of TikTok
For Trump, TikTok is more than a tech issue. It’s political capital.
He credits the platform with helping him connect with younger voters. Positioning himself as the president who “saved TikTok” could be a powerful narrative heading into 2025.
For Xi, TikTok is more than a business. It’s a symbol of Chinese tech power on the global stage. Conceding too much undermines that image.
That’s why this isn’t just a business deal. It’s a geopolitical chess match, with algorithms as pawns and public opinion as the prize.
The Breakdown
- If the deal goes through: TikTok survives in the U.S. under a new structure. Trump claims victory. China saves face. But questions linger about whether the new app really solves security concerns.
- If the deal falls apart: A ban looms in December. Millions of creators lose their platform. Businesses scramble. Competitors like Instagram Reels and YouTube Shorts stand ready to capitalize.
- If the extensions continue: TikTok stays in limbo, neither banned nor secure, with politics dictating its future more than market forces.
GAME CHANGER MOMENT
Here’s the reality: the TikTok deal isn’t about TikTok anymore.
- It’s about whether the U.S. can demand algorithmic sovereignty from foreign platforms.
- It’s about whether China will let its most successful global app be reshaped by American politics.
- It’s about how governments treat digital platforms not as apps, but as geopolitical assets.
For creators and users, the uncertainty is exhausting. For politicians, it’s leverage. For ByteDance, it’s survival.
The truth is, a final deal may never look clean. It may be a patchwork of extensions, licensing agreements, and political announcements that keep changing the rules.
But one thing is clear: TikTok is no longer just a platform. It’s a bargaining chip. And in 2025, the future of social media will be written not in code, but in negotiations between Washington and Beijing.
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