According to Fortune, the Trump administration has signaled that a TikTok ownership deal could be finalized as soon as Thursday during President Donald Trump’s visit to South Korea, where he will meet with Chinese President Xi Jinping. Treasury Secretary Scott Bessent confirmed on CBS’s “Face the Nation” that the two leaders would “consummate that transaction on Thursday in Korea,” potentially ending months of uncertainty about the popular video-sharing platform’s fate in the United States. This development follows four executive orders from Trump extending deadlines after Congress passed and President Joe Biden signed a law that would ban TikTok if it didn’t find a new owner to replace China’s ByteDance. Recent Pew Research Center data shows only about one-third of Americans now support a TikTok ban, down from 50% in March 2023, with approximately 43% of U.S. adults under 30 regularly getting news from the platform. This potential resolution raises critical questions about implementation and long-term security.
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The Algorithmic Sovereignty Standoff
The core challenge in any TikTok ownership solution lies in the algorithm itself—the sophisticated recommendation engine that has made the platform so successful. China has previously stated that this algorithm must remain under Chinese control by law, creating a fundamental conflict with U.S. requirements that any divestment must mean complete separation from ByteDance. This represents a classic case of competing digital sovereignty claims, where both nations view control over critical algorithms as matters of national interest. The technical reality is that simply transferring ownership without the underlying algorithmic infrastructure would significantly diminish TikTok’s value proposition, while complete algorithmic transfer faces both legal and political hurdles in China. This creates a scenario where any “solution” might be more about political optics than genuine technological separation.
Executive Authority Versus Congressional Mandate
The potential deal raises significant constitutional questions about the balance of power between the executive and legislative branches. Congress passed bipartisan legislation with clear requirements for TikTok’s separation from Chinese ownership, yet the Trump administration has operated through a series of executive orders that effectively delayed implementation. This creates a precedent where presidential diplomacy can effectively override congressional mandates on national security matters. The legal foundation for these repeated extensions remains questionable, particularly given that the original legislation provided specific mechanisms and timelines for compliance. Any final agreement will likely face immediate legal challenges testing whether executive action can effectively modify statutory requirements established by Congress.
Data Governance in Geopolitical Context
The fundamental concern driving TikTok scrutiny involves how user data might be accessed or influenced by the Chinese government through ByteDance’s ownership. While U.S. officials have consistently warned about potential vulnerabilities, they’ve presented no evidence of actual data manipulation occurring. This creates a security dilemma where the mere potential for abuse justifies restrictive measures, regardless of whether abuse has actually occurred. The situation reflects broader tensions in global data governance, where nations are increasingly asserting control over digital infrastructure they consider strategically important. For American users, the practical reality is that their data already flows through numerous international channels and platforms with varying degrees of transparency about government access—making TikTok’s specific case more about geopolitical positioning than unique privacy concerns.
Broader Market and Platform Implications
The resolution of TikTok’s ownership saga will establish important precedents for how digital platforms operate across geopolitical divides. Other Chinese-owned platforms with significant international user bases, such as TikTok’s sister app Douyin or emerging platforms from other nations, will closely watch the outcome as a template for navigating U.S. market access. Domestically, American social media companies stand to gain market share if TikTok faces restrictions, but they also face increased scrutiny over their own data practices and algorithmic transparency. The situation has already accelerated discussions about creating “splinternets”—separate internet ecosystems governed by different national regulations and standards. How this particular case resolves will influence whether future digital platforms can truly operate as global entities or must inherently align with specific national jurisdictions.
Implementation and Verification Challenges
Even if a political agreement is announced, the practical implementation presents enormous complexity. Verifying complete separation from ByteDance influence requires technical capabilities that may exceed current regulatory oversight mechanisms. The algorithm’s continuous evolution means that what constitutes “control” is a moving target, with potential for subtle influence through updates, training data selection, or architectural changes. Previous attempts at similar separations in other industries have shown that ownership changes alone don’t necessarily eliminate underlying dependencies or influence channels. The failed April deal demonstrates how quickly political developments can unravel complex technical arrangements, suggesting that any agreement remains fragile until fully operationalized and tested over time.
