Trump administration announces framework agreement, with Oracle’s Larry Ellison tipped as likely buyer
The Trump administration and China have reached a framework deal to keep TikTok operating in the United States, officials confirmed Monday. The agreement ends years of uncertainty over the app’s future and clears the way for a possible meeting between President Donald Trump and Chinese President Xi Jinping later this year.
The Deal at a Glance
US Treasury Secretary Scott Bessent said the two sides had finalized a framework agreement, with Trump scheduled to speak directly with Xi on Friday to finalize details. The move comes after months of negotiations and multiple deadline extensions under the Foreign Adversary Controlled Applications Act, which required TikTok’s Chinese parent, ByteDance, to divest US operations.
“Without President Trump’s leadership and the leverage he provides, we would not have been able to secure this deal today,” Bessent said during trade talks in Madrid.
National Security & Trade Considerations
US Trade Representative Jamieson Greer described the agreement as “fair for the Chinese and completely respectful of US national security concerns.” Chinese officials echoed the sentiment, with Vice Minister of Commerce Li Chenggang calling the discussions “candid and in-depth.”
The framework reportedly includes safeguards for American user data, potential licensing of TikTok’s algorithms, and broader commitments to reduce investment barriers between the two countries.
Who Could Buy TikTok?
The administration has not confirmed the American-backed buyer, but industry watchers expect a consortium led by Oracle executive chairman Larry Ellison. Oracle already hosts TikTok’s US data and previously attempted to purchase the app in 2020.
Other investor groups, including one led by former Los Angeles Dodgers owner Frank McCourt and “Shark Tank” investor Kevin O’Leary, have also expressed interest. However, analysts believe they lack the capital needed to acquire TikTok’s US assets — particularly its powerful algorithm.
Politics and TikTok’s Future
TikTok, with roughly 170 million American users, has become a political lightning rod. Trump originally pushed to ban the app but shifted his stance after young voters — a key demographic on the platform — played a surprising role in his 2024 election win.
While a bipartisan law signed under President Joe Biden paved the way for TikTok’s potential ban, Trump’s extensions of enforcement deadlines kept the app online while negotiations continued. Monday’s breakthrough could pave the way for Trump and Xi’s first in-person meeting of Trump’s second term, possibly during his Asia trip in late October.
On Truth Social, Trump hinted at the agreement:
