
American TikTok users are expected to steer clear of a potential shutdown following the Trump administration's announcement on Monday that a "framework" agreement had been reached with China.
A deadline falls on Wednesday for TikTok's Chinese parent company, ByteDance, to secure a US buyer or risk being prohibited in the US due to concerns about national security.
On Monday, President Donald Trump indicated that he had secured an agreement with China to maintain the social media platform's operation.
The major Trade Meeting inEuropeBetween the United States of America and China, it has gone VERY WELL! It will be ending soon," Trump wrote on his platform Truth Social.
A deal was also finalized regarding a 'specific' company that young people in our country greatly wished to preserve. They will be extremely pleased!
Trump mentioned that he will be communicating with Chinese President Xi Jinping on Friday. He noted that the relationship with the leader "remains very strong."
US Treasury Secretary Scott Bessent statedreportersearlier on Monday, it was reported that a "framework agreement" had been reached between the two nations.
Bessent revealed little about the transaction, stating only that it involved two "private parties" who have reached "commercial terms".
Who is eligible to purchase the application?
Oracle may be part of a TikTok agreement between the United States and China, as reported by American media outlet CBS.
Sources told the broadcasterOn Monday, it was reported that Oracle might be part of a group of companies that could enable TikTok to keep operating in the US, provided a "framework deal" between the two nations is finalized by the end of the week. The next step involves efforts to independently confirm these reports.
Trump previously saidHe was aware that the application would be sent to Oracle Chairman Larry Ellison, who has not made any public remarks regarding a potential TikTok acquisition.
Who else might purchase the application?
Bloomberg reportedIn January, a group consisting of the venture capital firm a16z, Susquehanna International Group, and General Atlantic—believed to include Oracle—is also in the process of considering the acquisition of the app.
Nevertheless, Trump also motivated a number of American buyers to step forward and place bids on the application.
Additional confirmed offers were made by technology firmsPerplexity AI, Microsoft, Amazon, billionaires Elon Musk and Frank McCourt through a consortium known as thePeople’s Bid, together with a group led by Job Mobz founder Jesse Tinsley, which comprises YouTube content creator Jimmy Donaldson, also known as Mr. Beast.
Another proposal put forward by the US president was the concept of a "sovereign wealth fund," which could be supported by revenue generated from trade tariffs "and other wise measures," as reported byReuters in February.
What is the US acquiring?
It remains uncertain if ByteDance would be required to sell TikTok's algorithm or only its operations in the US, as stated by DarÃo GarcÃa de Viedma, a technical and digital policy fellow at the Elcano Royal Institute in Spain, who spoke to Next earlier this year.
If the US fails to acquire the algorithm, it may alter the content displayed or suggested in Europe, potentially forcing creators within the "TikTok economy" to migrate to different platforms in order to sustain their income.
"Within a few days, the large TikTok community might shift to a different platform, which would significantly affect all the intellectual movements, culture, and politics that originate on TikTok," he stated.
Bessent refused to comment on what would happen to the social media application's algorithm if it were sold.
What was the origin of the TikTok bill?
Previously, Trump has stated that TikTok's activities in the United States should either be sold or undergo an ownership restructuring to ensure that the US holds a dominant stake.
If TikTok is to keep running, Trump has requested a 50 per centstakeeither through a partnership or with the participation of American investors and even the government.
The US Congress approved a legislation in 2024 during the tenure of former president Joe Biden, leading to the potential prohibition of the app in the United States unless its Chinese parent company, ByteDance, divested the business.
The Supreme Court upheldthe choice made in January, but following Trump's return to power, the approaching shutdown was delayed multiple times in an effort to reach an agreement, with the most recent deadline set for September 17. What can we expect to happen next?
One acknowledges TikTok, while the other acknowledges something different
Experts had previously informed Next that they thought TikTok was involved in the different trade negotiations with China.
"I can't envision a situation where both [Xi and Trump's] interests are satisfied through a purchase or a prohibition," GarcÃa de Viedma stated.
It would need to be included in a larger discussion, where one side gives up TikTok and the other offers something else, such as reducing tariffs or export restrictions.
The TikTok agreement was discussed during the current trade talks in Madrid, conveying the same message as before from Trump: that if the app does not sell its US operations, it might be prohibited.
Following Trump's re-election in January, American and Chinese representatives have convened four times to discuss a trade agreement: in May in Geneva, June in London, July in Stockholm, and recently in Madrid. The discussions covered various issues, such as lowering US tariffs and overseeing US export control policies towards China.
Reuters stated that TikTok was not brought up during the other trade discussions between the United States and China.