China Urges Balance in TikTok Deal with US Investors Taking 80% Stake

China urges the U.S. to ensure a "balance of interests" in TikTok negotiations, amid a proposed framework giving American investors like Oracle and Silver Lake 80% ownership, with Chinese stakeholders retaining 20%. This deal, potentially averting a ban, highlights broader tech and trade tensions, with Trump-Xi talks set to finalize details.
China Urges Balance in TikTok Deal with US Investors Taking 80% Stake
Written by Emma Rogers

In the escalating saga of U.S.-China relations over TikTok, Beijing has once again emphasized the need for a “balance of interests” in any potential deal, urging Washington to foster a fair business environment for Chinese firms. This stance comes amid reports of a framework agreement that could reshape the app’s ownership, with American investors poised to take a dominant role while allowing limited Chinese influence. According to a recent article on MSN, Chinese officials reiterated this position following President Donald Trump’s comments on progress toward U.S.-controlled ownership of the popular short-video platform.

The negotiations, which have dragged on for years, highlight the broader tensions in tech and trade between the world’s two largest economies. TikTok, owned by China’s ByteDance, has faced scrutiny over data security and potential espionage risks, prompting U.S. lawmakers to push for a divestiture or outright ban. Yet, as detailed in a Reuters report, China maintains that any resolution must respect mutual interests, avoiding what it sees as coercive tactics.

Framework Emerges Amid Diplomatic Thaw

Recent developments suggest a breakthrough, with U.S. Treasury Secretary Scott Bessent announcing a preliminary deal framework that would see U.S. entities like Oracle and Silver Lake leading a consortium with roughly 80% ownership, while Chinese shareholders retain the remainder. This structure, as outlined in a CNBC piece, includes a seven-member board where Americans hold six seats, ensuring control over the algorithm and user data—key concerns for national security.

White House officials have stressed that this setup would place TikTok’s core operations firmly under American oversight, a point echoed in an NBC News update. Press Secretary Karoline Leavitt described it as a means to safeguard U.S. interests without fully severing ties, potentially averting a ban that could disrupt millions of users and creators.

High-Level Talks Signal Broader Implications

President Trump and Chinese President Xi Jinping are set to finalize details, with a planned meeting in South Korea next month to discuss not just TikTok but also trade tariffs, illicit drugs, and geopolitical issues like Russia’s war in Ukraine. A Reuters analysis notes this as a rare diplomatic win, breaking months of gridlock and possibly easing tariffs that have strained bilateral trade.

However, Beijing’s call for balance underscores lingering wariness. As reported in a BBC article, Chinese officials have yet to fully endorse the deal publicly, insisting on protections against unfair treatment of their tech giants. This reflects a pattern where China resists forced sales, viewing them as encroachments on sovereignty.

Industry Ramifications and Future Uncertainties

For tech insiders, the deal’s structure could set precedents for cross-border data governance, influencing how platforms like WeChat or others navigate U.S. regulations. Posts on X (formerly Twitter) capture mixed sentiments, with some users highlighting Trump’s concessions and others decrying perceived Chinese leverage, though these remain speculative.

Critics argue the 20% Chinese stake might still allow backdoor influence, but proponents see it as a pragmatic compromise. A CNN Business report suggests the agreement could stabilize TikTok’s U.S. operations, preserving its value amid advertiser and user growth. As negotiations culminate, the outcome may redefine tech diplomacy, balancing innovation with security in an era of heightened rivalry.

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