Is TikTok Banned in the U.S.? Here’s the Latest on the China Deal

Chinese and US officials gathered in Spain this week for high-stakes trade discussions, with TikTok once again taking center stage. US Trade Representative Jamieson Greer confirmed that both sides reached a deal meant to balance fairness for China with strict national security protections for America. Greer stressed that while the US welcomes investment, safeguarding national security remains the top priority.

China’s lead negotiator Li Chenggang described the talks as candid and productive, saying the two countries reached a framework agreement that will allow TikTok to continue operating in the United States. According to Chinese state media, the plan involves cooperation on TikTok-related concerns, reducing barriers to investment, and promoting stronger economic ties. Li emphasized, however, that China would not strike a deal that compromises its principles or companies’ interests.

Reports from Beijing suggested that the framework could involve new systems for managing US user data, along with potential licensing of TikTok’s algorithms and intellectual property. Neither TikTok nor its parent company ByteDance responded to requests for comment.

The negotiations come after years of uncertainty. A bipartisan bill signed into law during the Biden administration banned TikTok in the US over national security concerns unless ByteDance sold its American operations to a US-backed buyer. While Trump supported that ban late in his first term, his stance shifted once he credited TikTok with helping him attract younger voters in the 2024 election.

TikTok briefly went offline in January 2025 when new restrictions took effect, but Trump’s executive order delayed enforcement for 75 days. He extended the deadline multiple times, most recently to September 17, while signaling that further extensions were possible without a deal. Critics have accused him of sidestepping Congress, but the administration maintained that a negotiated agreement was the best path forward.

The question of who might buy TikTok’s US assets remains unsettled. Investor groups led by Frank McCourt and Kevin O’Leary have expressed interest, though they admitted they could not afford to purchase the app’s prized algorithm. Analysts see Oracle co-founder Larry Ellison as a more realistic buyer, given Oracle’s past data-hosting relationship with TikTok and its deep pockets.

For now, it is unclear whether the final agreement will allow any Chinese ownership, or whether the US will insist on a full divestiture. Still, China’s willingness to engage marks a shift, especially as trade tensions have escalated in other areas, such as Beijing’s move to accuse Nvidia of antitrust violations.

A resolution is seen as critical for opening the door to a face-to-face meeting between Trump and Xi later this year during Trump’s planned Asia tour. On Monday, Trump hinted that progress was close, posting on Truth Social that a deal involving a “certain” company beloved by young Americans had been reached and that he would soon speak directly with Xi.