TikTok’s U.S. Future Remains Unclear, China Signals Deal Is Not Final
Uncertainty has returned to TikTok’s long-running U.S. saga after Chinese officials issued cautious statements that appear to cast doubt on reports of a finalized agreement to keep the app operating in the American market.
In mid-December, multiple reports indicated that TikTok had reached a deal to spin off its U.S. operations into a locally controlled entity, led by an Oracle-backed consortium. TikTok management reportedly told U.S. staff that the agreement would allow the app to continue operating, with the transaction set to take effect on January 22, 2026. That date is significant, falling just one day before the expiration of the latest executive order delaying enforcement of a U.S. law that would otherwise ban the app.
The proposed sale was designed to comply with the “Protecting Americans from Foreign Adversary Controlled Applications Act,” which technically took effect in January 2025. President Trump has repeatedly paused enforcement of the legislation since returning to office, issuing four executive orders to allow negotiations with China and ByteDance, TikTok’s parent company, to continue.
However, a statement published by Chinese state media on December 25 suggested that Beijing has not yet signed off on the arrangement. According to an article posted on China Daily, “The Chinese government hopes that relevant parties can reach a solution regarding TikTok that complies with Chinese laws and regulations and achieves a balance of interests.”
A Chinese government spokesperson added that the two sides had reached only a “basic framework consensus” through consultation and cooperation, and urged the U.S. to “earnestly fulfill” its commitments. The spokesperson also called on Washington to provide “a fair, open, transparent, and non-discriminatory business environment for the continuous and stable operation of Chinese enterprises in the United States.” The language contrasts with earlier reports that portrayed the agreement as effectively complete. ByteDance has not issued a public statement confirming the deal, further adding to the uncertainty.
