U.S. President Donald Trump has extended the deadline for TikTok’s U.S. operations until December 16, 2025, allowing more time to finalize a deal that would transfer the app’s U.S. assets from its Chinese parent company, ByteDance, to American ownership. This marks the fourth extension since the original deadline of January 19, 2025, set by the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). The law mandates that ByteDance divest from TikTok or face a nationwide ban due to national security concerns over user data privacy and potential influence operations.
The latest extension follows a framework agreement reached between U.S. and Chinese officials during a meeting in Madrid. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led the discussions, aiming to address security concerns while allowing TikTok to continue operating in the U.S. The proposed deal involves a consortium of American investors, including Oracle, Silver Lake, and Andreessen Horowitz, acquiring an 80% stake in TikTok’s U.S. operations. ByteDance would retain a minority interest of 19.9% and continue to license its Chinese-developed algorithm to the new entity.
President Trump has expressed the importance of keeping TikTok operational in the U.S., citing its popularity among younger voters and its role in his 2024 election campaign. He has previously stated that he “hates to see value like that thrown out the window,” referring to the app’s influence and reach.
Despite the progress, the deal has faced criticism from some lawmakers and national security experts. Concerns persist over ByteDance’s continued involvement through the algorithm licensing agreement, with some arguing that it could still pose risks related to data privacy and content manipulation. The House Select Committee on China has emphasized the need for stringent safeguards to ensure that the Chinese government cannot access U.S. user data.
The framework agreement also includes provisions for Oracle to manage all U.S. user data at its Texas facilities, addressing concerns about data security. Additionally, the new U.S.-based TikTok app will operate on a separate algorithm and data system, distinct from the global version.
As the December 16 deadline approaches, the Trump administration is expected to continue negotiations with ByteDance and the involved investors to finalize the deal. A scheduled call between President Trump and Chinese President Xi Jinping is anticipated to further solidify the agreement and address any remaining issues.
The outcome of these negotiations will have significant implications for the future of TikTok in the U.S., as well as for broader U.S.-China relations and the global tech landscape. Stakeholders are closely monitoring developments, as the deal could set a precedent for how foreign-owned tech companies are regulated and operate within the United States.
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