This tentative agreement follows prolonged and tough negotiations between TikTok and the Trump administration. Initially, TikTok was threatened with a ban in January, but President Donald Trump allowed an extension to negotiate a sale of its U.S. operations, in compliance with the Protecting Americans from Foreign Adversary Controlled Applications Act. After granting additional extensions, TikTok was given until September 17th to finalize an agreement. It remains uncertain whether the deadline will be officially extended again or if this announcement effectively counts as the desired divestiture; it’s also unclear if this arrangement meets the legislation’s stipulations.

Bessent conveyed to the press that the U.S. and China are “very close” to finalizing an agreement, but noted China had some “very aggressive demands,” according to The New York Times. Earlier attempts to reach an agreement were hindered by Trump’s trade conflicts. In July, The Information and Reuters reported that Oracle, along with other investors such as Susquehanna International Group and Andreessen Horowitz, were preparing to bid for TikTok, with its Chinese owner, ByteDance, retaining a minority share. TikTok is reportedly developing a new version of the app that would be powered by an algorithm based solely on data from U.S. users.

On Truth Social, Trump mentioned the U.S.-China meeting went “VERY WELL,” and noted that a “deal was also reached on a ‘certain’ company that young citizens in our nation were eager to preserve.”