U.S. and China announce TikTok deal in principle but key details on algorithm remain unclear

A new deal between the U.S. and China could decide the future of TikTok, one of the world’s most popular short-video apps. Officials from both sides recently announced a framework agreement that could move TikTok’s American operations into U.S.-controlled ownership.

But despite the announcement, many questions remain unanswered, and serious hurdles stand in the way before any deal can move forward.

The Algorithm Question

With 170 million Americans using TikTok, the stakes are high. The talks focus not just on ownership but also on sensitive technology, political approval, and control of the app’s most valuable assets. Here are the main challenges that could shape the outcome of this high-profile case.

At the heart of the negotiations is the powerful recommendation algorithm that makes TikTok so popular. This algorithm decides what videos users see, and it is widely considered the app’s most valuable asset. Without it, TikTok in the U.S. may not be the same app that people know today.

China has been clear about its position on this matter. In 2020, when earlier talks about a possible sale took place, China updated its export control rules. These rules gave the Chinese government direct authority to block the transfer of sensitive technologies such as recommendation algorithms. Since then, officials in Beijing have expressed reluctance to let TikTok’s algorithm leave their control.

This creates a major roadblock. Even if ownership of TikTok’s U.S. business changes hands, the deal may not move forward unless both sides agree on what happens to the algorithm. Without clarity, the app’s future in the U.S. remains uncertain.

Approval From Congress

Another hurdle lies in Washington. In 2024, lawmakers passed a law requiring TikTok’s parent company, ByteDance, to sell the app’s U.S. operations or face a ban. The law was passed with wide support across political parties and was later upheld by the Supreme Court. This means that any new agreement must fully comply with the law, or it risks rejection.

How Cyber Attacks on Industrial Control Systems Can Endanger Lives ?

Since the law came into effect, the enforcement deadline has been extended several times. Some lawmakers have questioned the legal authority behind these extensions. They argue that any deal that does not meet the strict terms of the law would not be valid.

This puts the spotlight on Congress. Lawmakers have already said they plan to carefully review the latest deal once the details are made public. If they find that it does not comply with the law, they have the power to block it. This creates uncertainty over whether the framework agreement will survive the political test in Washington.

Who Will Own TikTok After the Deal?

Ownership is another sensitive issue. ByteDance currently owns TikTok and has a mix of American and Chinese investors. The big question is whether ByteDance will be completely removed from TikTok’s U.S. operations.

The expected plan is to spin off TikTok’s American operations into a new company based in the U.S. This company would be majority-owned and operated by American investors. However, it is still unclear whether China will allow ByteDance to fully give up ownership, or if some stake will remain.

Shocking GDPR Complaint Exposes TikTok, WeChat, and AliExpress Over User Data Control

This is critical because lawmakers in the U.S. have stressed that any American investors involved must cut all ties with China. If China keeps even partial ownership, it could create another point of conflict and possibly block the deal.

The structure of the new company is still being worked out, and officials have not released details. What is clear, however, is that ownership and control will remain one of the toughest issues to solve before the deal can be finalized.

Renuka Bangale
Renuka Bangale
Renuka is a distinguished Chartered Accountant and a Certified Digital Threats Analyst from Riskpro, renowned for her expertise in cybersecurity. With a deep understanding of cybercrimes, malware, cyber warfare, and espionage, she has established herself as an authority in the field. Renuka combines her financial acumen with advanced knowledge of digital threats to provide unparalleled insights into the evolving landscape of information security. Her analytical prowess enables her to dissect complex cyber incidents, offering clarity on risks and mitigation strategies. As a key contributor to Newsinterpretation’s information security category, Renuka delivers authoritative articles that educate and inform readers about emerging threats and best practices.

TOP 10 TRENDING ON NEWSINTERPRETATION

Remote jobs exploited in global scheme as Amazon halts 1,800 North Korea-linked applications

Amazon has recently blocked more than 1,800 job applications...

Romania hit by ransomware attack as 1,000 government computers taken offline in water authority breach

Romania’s water management authority has been hit by a...

“Democracy under siege”: Sanders warns Meta and Big Tech are buying U.S. elections to block AI rules

U.S. Senator Bernie Sanders has issued a strong warning...

AI Didn’t Kill Jobs — It Quietly Made Them More Valuable

Workers around the world have been worried about artificial...

Redacted Epstein files trigger backlash as AOC names DOJ and demands accountability

Representative Alexandria Ocasio-Cortez (AOC) triggered widespread attention after posting...

House committee releases photos from Jeffrey Epstein estate with candid and unsettling content

New photos have emerged from the estate of Jeffrey...

Kamala Harris responds to criticism over Biden’s handling of Epstein-related documents

The controversy surrounding documents linked to disgraced sex trafficker...

Julian Assange challenges Nobel Peace Prize award, seeks to block payment to Venezuelan opposition leader

WikiLeaks founder Julian Assange has filed a complaint against...

“This is a huge red flag”: AOC says Trump used force against cartels without sharing intelligence with Congress

The debate in Washington has intensified after strong criticism...

Food Giants Call It “Efficiency” — Workers Call It Tens of Thousands of Layoffs

The food and beverage industry experienced a very difficult...

AI Didn’t Kill Jobs — It Quietly Made Them More Valuable

Workers around the world have been worried about artificial...

Redacted Epstein files trigger backlash as AOC names DOJ and demands accountability

Representative Alexandria Ocasio-Cortez (AOC) triggered widespread attention after posting...

Kamala Harris responds to criticism over Biden’s handling of Epstein-related documents

The controversy surrounding documents linked to disgraced sex trafficker...

Related Articles

Popular Categories

error: Content is protected !!