Win-Win deal: China prepares for transfer of TikTok technology

Tengrinews.kz – On Wednesday, China called the framework agreement reached in Madrid to transfer control of the short video app TikTok to the United States a “win-win” deal in an editorial published by state media. The country also stated that it would review the export of TikTok technologies and intellectual property licensing, according to Reuters and People’s Daily.

The deal aims to ensure data security for users and comply with legal requirements, and is viewed as strategically important for TikTok’s future global expansion.

“China's international trade representative and vice minister of commerce, the two sides held candid discussions on TikTok and related concerns, reaching a basic framework consensus on resolving the issue through cooperation, reducing investment barriers and promoting economic and trade ties,” stated People’s Daily, the official newspaper of the Chinese Communist Party.

China’s International Trade Representative and Vice Minister of Commerce, Li Chenggang, reaffirmed that China opposes the politicization, weaponization, and military use of technology and trade, and will not enter into agreements that violate its principles, corporate interests, or international fairness.

He emphasized that China will firmly defend its national interests, the legitimate rights of Chinese companies, and will handle technology export licenses in accordance with current laws and regulations.

The United States had previously expressed concern over the potential transfer of user data to China, which became a key reason for initiating negotiations on the deal.

Experts believe that a successful resolution could serve as a model for future international tech agreements.

TikTok, owned by Chinese tech giant ByteDance, has become one of the most popular social platforms globally, and its influence continues to grow.

Investors across the Pacific are now anticipating the scheduled Friday phone call between U.S. President Donald Trump and Chinese President Xi Jinping, during which the deal is expected to be formally confirmed. Trump had earlier announced that an agreement had been reached and previewed the upcoming conversation.

According to two Reuters sources, the main terms of the new deal — similar to the one proposed in April — include allowing ByteDance to retain a 19.9% stake, just under the 20% threshold.

An 80% stake would go to a consortium including current ByteDance investors: Susquehanna International Group (SIG), General Atlantic and KKR (KKR.N), Andreessen Horowitz (as a new investor), Oracle (ORCL.N) is also expected to acquire a stake, and The Wall Street Journal reported that Silver Lake also intends to invest.