TikTok Deal Faces Unanswered Questions on ByteDance, Algorithm

TikTok Deal Faces Unanswered Questions on ByteDance, Algorithm

President Donald Trump said Friday that Chinese President Xi Jinping approved a deal to keep TikTok running in the U.S., but major questions remain over ownership, security, and the app’s powerful algorithm. The agreement follows a 2024 law requiring TikTok’s China-based parent, ByteDance, to divest or face a nationwide ban.

Under the reported plan, TikTok would be spun off into a new U.S. entity, largely owned by American investors such as Oracle, Silver Lake, and Andreessen Horowitz. Chinese shareholders would retain less than 20% ownership, seemingly meeting legal requirements. However, the administration has broad latitude to decide whether such a structure truly removes Beijing’s control.

The biggest sticking point is TikTok’s recommendation algorithm, the core technology behind its popularity. While U.S. law bans cooperation on data sharing and algorithms, Chinese officials have hinted at a licensing deal that would keep ByteDance involved in some capacity. Critics warn this could leave the door open for Chinese influence, undermining the purpose of the divest-or-ban law.

Lawmakers from both parties, along with figures like Mike Pence, insist that TikTok’s algorithm must be fully separated from ByteDance to ensure national security. Without that, opponents argue, the deal risks becoming a loophole rather than a solution.

Key Takeaways

1. Ownership concerns: TikTok’s proposed U.S. spin-off may still allow ByteDance-linked investors to hold minority stakes, testing the law’s limits.

2. Algorithm control: Licensing TikTok’s algorithm could leave Beijing with influence, sparking bipartisan pushback.

3. Legal flexibility: The Trump administration has wide discretion to approve the deal, even if Congress disagrees.

Read the full article at The Hill.