TikTok Transfer Approved by China Amid U.S. Security Concerns

China has approved a transfer agreement for TikTok's U.S. operations, according to U.S. Treasury Secretary Scott Bessent. This marks progress in the 18-month uncertainty following a 2024 U.S. law requiring ByteDance to sell its U.S. assets. A new entity will have a majority American board with ByteDance holding less than 20%.

China has given its nod to the transfer agreement for TikTok's U.S. operations, U.S. Treasury Secretary Scott Bessent announced on Thursday. He anticipates movement on this issue in the coming weeks and months, though specifics remain sparse.

The approval came after a meeting in Kuala Lumpur where the TikTok agreement was finalized in principle. President Donald Trump's discussions with Chinese leader Xi Jinping seemed to have spurred this progress. China will cooperate with the United States to resolve remaining issues concerning the video platform, noted a Chinese spokesperson. ByteDance, TikTok's owner, has not commented on the development.

The app's fate has been in limbo for over 18 months following a 2024 U.S. law mandating that ByteDance sells its U.S. assets by January 2025. With Trump's executive order affirming a consortium takeover of the operations, U.S. Representative John Moolenaar cautions about potential concerns with the TikTok algorithm's licensing agreements.

(With inputs from agencies.)