China has approved the transfer agreement for TikTok’s U.S. operations, U.S. Treasury Secretary Scott Bessent confirmed, paving the way for the short-video app’s ownership restructuring ahead of a January 2026 enforcement deadline, per Reuters.

“In Kuala Lumpur, we finalized the TikTok agreement in terms of getting Chinese approval, and I would expect that would go forward in the coming weeks and months,” Bessent told Fox Business Network following U.S. President Donald Trump’s meeting with Chinese leader Xi Jinping.

China’s Commerce Ministry said it “will work with the U.S. side to properly address issues related to TikTok,” according to an official statement released on October 30.

Deal Structure Preserves Algorithm Access

The agreement establishes a U.S.-based joint venture with majority American ownership, while providing TikTok’s Chinese parent company, ByteDance, with limited ongoing involvement. ByteDance will hold less than 20% equity in TikTok U.S. and appoint one of seven board members, with Americans controlling the other six seats.

Despite the ownership transfer, ByteDance continues to maintain economic interests through licensing arrangements. Online reports and sources familiar with the deal indicate that the Chinese company may receive roughly half of TikTok’s U.S. profits through licensing and profit-sharing arrangements, with some outlets estimating a technology licensing fee of about 20% of incremental revenue.

Trump’s September 25 executive order confirmed that the algorithm will be retrained and monitored by U.S. security partners, with its operation under the new joint venture’s control.

Timeline and Congressional Oversight

As Reuters notes, the deal satisfies the requirements of the 2024 law ordering TikTok’s Chinese owners to sell U.S. assets or face a shutdown. Trump delayed enforcement until January 2026 while setting a 120-day timeline to complete the transaction.

Congressional oversight continues as Representative John Moolenaar, Republican chair of the House Select Committee on China, expressed “serious concerns” about the licensing agreement for TikTok’s algorithm.

The arrangement involves a consortium of American investors, including Oracle, taking majority ownership of the platform used by 170 million Americans. Bessent noted his role was “to get the Chinese to agree to approve the transaction,” which he characterizes as “successfully accomplished” during Trump’s Asia visit.

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