China and the US Agree on TikTok Sale to American Investors: The Long-Awaited Compromise Concludes
In a surprising yet positive development in China-US relations, news emerged about the final approval of the deal to sell the popular app TikTok to American investors.
On October 30, US Secretary of the Treasury Scott Bessent announced that China had given its formal approval for the transaction, which involves transferring control of ByteDance’s platform to the United States.
Bessent stated that the agreement was finalized in Kuala Lumpur during high-level meetings and is expected to be implemented in the coming weeks and months.
This resolution marks the culmination of prolonged negotiations, which involved numerous political and economic challenges.
China’s Ministry of Commerce also confirmed its readiness to resolve issues related to TikTok in accordance with national security interests.
According to US law, Chinese owners of the platform have until January 2025 to sell their assets in the U.S., a requirement that has remained unresolved for over a year and a half.
Legislative initiatives and political pressure from Congress have complicated ByteDance’s ability to retain control over TikTok.
Under the new arrangement, the platform’s assets will be managed by a newly established US entity, with the majority of shares owned by American investors.
ByteDance will maintain a single representative on the board of this enterprise, but its influence will be reduced to less than 20%.
In accordance with the national security law, six board seats will be held by US representatives.
This distribution aims to balance interests and minimize security concerns for both countries.
Overall, this development demonstrates the mutual desire of China and the US to foster peace and cooperation in the technological sphere, highlighting the importance of diplomatic efforts to address global security and innovation issues.