TikTok Deal Between the United States and China: Details of the Anticipated Agreement

Framework and Final Agreement

The United States and China are moving towards finalizing a pivotal agreement regarding the TikTok application, according to statements by Treasury Secretary Scott Pisent. This development follows Pisent's announcement last month in Madrid of reaching a "framework" for the deal, and President Donald Trump's signing of an executive order aimed at facilitating the conclusion of this important agreement.

In a statement on CBS's "Face the Nation" program Sunday morning, Pisent affirmed that the two countries had reached a "final agreement on TikTok". He clarified that "all details have been settled", and it is now up to the two leaders to finalize the anticipated deal. Despite Pisent's refusal to delve into specific details, he indicated that his primary mission was to secure China's approval of the deal, which he confirmed was successfully achieved.

Oracle's Role and TikTok's New Structure

President Trump has extended the deadline several times to comply with a law requiring ByteDance, the owner of the TikTok application, to divest its US operations or face a ban in the United States. Under this important executive order, TikTok's operations in the United States - including its advanced recommendation algorithm, source code, and content moderation - will come under the supervision of an entirely new board of directors. Reports have confirmed that Oracle will assume a pivotal responsibility for security operations, and will manage and audit the algorithm to ensure the security of American user data and retrain it when necessary.

Alliance of American Investors

The group of investors in the new joint venture consists of prominent American companies, including Oracle (led by Trump's ally, Larry Ellison), and Fox Corp (owner of Fox News), in addition to Andreessen Horowitz and Silver Lake Management. This formation aims to ensure full American control over the application's operations in the United States.

Broader Trade Issues and Rare Earth Minerals

Pisent made his remarks from Malaysia's capital, Kuala Lumpur, where Chinese and American trade negotiators also announced reaching a framework agreement on tariffs and other trade issues. US Trade Negotiator Jamieson Greer told reporters that their discussions included rare earth minerals, which are vital materials for manufacturing semiconductors and other technical products, noting that China plans to tighten export controls on them. Greer affirmed, "We talked about extending the truce, we talked about rare earth minerals, of course, and we talked about all kinds of topics."