China- USA
A new framework agreement has been reached between the United States and China on the future of TikTok, with U.S. technology company Oracle expected to be a central player in the deal. The agreement, which could see the popular video app shift to U.S.-controlled ownership, is a major breakthrough in the long-running dispute and aims to address U.S. national security concerns.
The deal, which was brokered during trade talks in Madrid, would allow TikTok to continue operating in the U.S. under a new structure. While the exact details remain unclear, sources indicate that a consortium of firms, led by Oracle, would be tasked with enabling TikTok’s U.S. operations. This would involve taking over the handling of U.S. user data and providing the technical infrastructure to ensure it is not accessible by the Chinese government.
Oracle’s involvement builds on its previous “Project Texas” partnership with TikTok, which saw the company host all of TikTok’s U.S. user data on its servers. However, that agreement failed to fully satisfy lawmakers, who remained concerned about China’s control over the platform’s powerful recommendation algorithm. The new framework deal reportedly addresses this issue, with China having reached a “basic framework consensus” on the use of intellectual property rights, including the algorithm.
The agreement comes just as a September 17 deadline, which could have led to a full ban on the app, was looming. U.S. President Donald Trump has suggested a deal has been reached, stating on Truth Social that he would be speaking with Chinese President Xi Jinping to finalize it. The framework is seen as a victory for both sides, allowing TikTok to continue its U.S. operations while appeasing U.S. security concerns. For Oracle, the deal could be a significant commercial opportunity and a major win for its cloud business.
Headline Points
* Framework Deal Reached: The U.S. and China have reached a framework agreement on TikTok’s future, averting a potential nationwide ban.
* Oracle as Key Player: Technology company Oracle is expected to lead a consortium of firms in taking control of TikTok’s U.S. operations and data.
* Addressing Security Concerns: The deal aims to resolve long-standing U.S. national security concerns over Chinese access to user data and the app’s powerful algorithm.
* Deadline Avoided: The agreement comes just before a September 17 deadline, with officials hinting that it could be extended by 90 days to finalize the details.
