Last week, news broke that TikTok agreed to sell its US operations. At first glance, this appeared to be a win for the US and a concession from China. However, the situation is more complex and deserves a closer look.
Donald Trump held a phone conversation with Chinese President Xi Jinping. They discussed the trade war, Taiwan, and the issues surrounding TikTok, which had previously been suspended in the US over concerns about data security and its influence on youth. After the call, Trump stated that an agreement on TikTok had been reached and only needed to be signed.
Earlier, President Joe Biden signed legislation banning TikTok in the US unless its American division was sold to a US company by the end of his term. The law reflected years of bipartisan concerns that ByteDance, TikTok’s Chinese owner and its algorithms could threaten national security.
TikTok challenged the law in court, but the Supreme Court upheld the ban, resulting in TikTok being blocked in the US for 14 hours. After returning to the White House, Trump issued an order delaying the ban for 75 days. During this period, many potential buyers emerged, including billionaire Frank McCourt, Elon Musk, and companies such as Oracle.
According to the proposed deal, US investors (Oracle, Silver Lake and others) would control most of TikTok USA. ByteDance would retain less than 20%, and although the algorithm would remain partly Chinese, it would be trained on American data, with Oracle ensuring user data security. For Trump, this is a political victory; for China, it is about retaining influence over core technology.
The US government expects to receive a multibillion-dollar commission from the deal. The agreement also strengthens US media conglomerates, notably the Ellison family (Oracle). China sees TikTok as a bargaining chip in wider US-China negotiations over tariffs, technology, and Taiwan.
If TikTok’s US division shifts to American investors, the attitude of Europe and Ukraine towards data security and social media influence will become increasingly relevant. The author calls for collaboration between Europe and Ukraine to ensure data security remains a priority.
