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China Approves TikTok Transfer Agreement, Paving Way for US Antitrust Resolution

By  |  October 31, 2025
China Approves TikTok Transfer Agreement, Paving Way for US Antitrust Resolution

China has granted approval for the transfer of the short video app TikTok, a key step in a long-running dispute between Washington and Beijing over data security and ownership of the platform. According to Reuters, U.S. Treasury Secretary Scott Bessent confirmed on Thursday that Chinese authorities had finalized their part of the agreement, describing it as a significant milestone that could lead to a final resolution in the coming months.

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    Speaking to Fox Business Network’s “Mornings with Maria,” Bessent said, “In Kuala Lumpur, we finalized the TikTok agreement in terms of getting Chinese approval, and I would expect that would go forward in the coming weeks and months, and we’ll finally see a resolution to that.” His remarks followed a meeting between President Donald Trump and Chinese leader Xi Jinping, signaling renewed engagement between the two governments on sensitive technology issues.

    China’s Commerce Ministry issued a statement earlier on Thursday saying the government would handle TikTok-related matters “properly” in coordination with the United States. A Chinese spokesperson added that “the Chinese side will work with the U.S. side to properly address issues related to TikTok,” according to Reuters.

    The approval marks progress in a dispute that has tested the limits of global antitrust and national security policy. TikTok, owned by Beijing-based ByteDance, has faced scrutiny in Washington over data protection and potential influence by the Chinese government. The app’s future in the U.S. was thrown into uncertainty when Congress passed a 2024 law requiring ByteDance to divest its U.S. assets by January 2025 or face a nationwide ban.

    Related: Lawmakers Question TikTok Deal That Lets ByteDance Keep Algorithm Control

    In response, Trump signed an executive order on September 25 approving a sale plan that would transfer TikTok’s U.S. operations to a consortium of American and global investors. The order concluded that the deal satisfied the national security conditions set under the 2024 law, giving 120 days to complete the transaction and extending enforcement until January 20, 2026.

    Per Reuters, the transaction includes several antitrust safeguards: the new U.S.-based company will control TikTok’s recommendation algorithm, which will be retrained and monitored by American security partners. The board of the new entity will have seven members—six American and one appointed by ByteDance—ensuring majority U.S. governance. ByteDance’s ownership stake will be limited to less than 20%, aligning with legal requirements designed to prevent foreign dominance.

    Despite the progress, U.S. lawmakers remain cautious. Representative John Moolenaar, the Republican chair of the House Select Committee on China, recently warned that any licensing deal allowing ByteDance continued access to TikTok’s algorithm could “raise serious concerns.” His comments highlight persistent skepticism in Washington about Beijing’s potential leverage, even under a restructured ownership plan.

    TikTok, which serves around 170 million users in the United States, has not issued a statement on the recent developments.

    Source: Reuters