In a surprise twist, US Treasury Secretary Scott Bessent announced that President Donald Trump would allow TikTok to continue operating without a US-based buyer. This ruling might result in the world’s most popular social media platform going dark in America. As negotiations between the US and China over TikTok escalated, this claim came out. An expiration of talks hangs over the issue, as a deadline for an agreement looms on Wednesday. Those conversations have taken on an increased sense of urgency. Both countries are still negotiating feverishly over a possible blueprint that would let TikTok continue operating in the US.
Bessent said the threat of a TikTok ban has been a driving force in the discussions. He noted that the app’s ability to close down “turned the tide” in conversations. This underscores its key importance in the broader U.S.-China trade negotiations. Enter Oracle, the tech behemoth, which is increasingly emerging as the dark horse partner. If a deal is completed, they could do far more to protect and defend TikTok’s ongoing operations.
When the news of these secret talks leaked out, Oracle’s stock skyrocketed, climbing almost 5%. This possible deal has already started to raise investor optimism. Oracle’s unique role in keeping TikTok in the US market has only added to this enthusiasm.
Those talks have soured after 48 hours of furious talks between US and Chinese negotiators. Just in the past week, Bessent observed that the Chinese side has come to view a trade deal as a real possibility. He anticipates additional negotiations to continue before the Wednesday deadline. This is a positive sign that both sides are committed to coming to a mutually acceptable resolution.
“So the Chinese are now feeling like they can get a deal on trade,” Bessent said in a recent CNBC interview. His remarks underscore the changed landscape of trade relations, which have been greatly impacted by the saga surrounding TikTok.
The high stakes of these negotiations shouldn’t be downplayed either. Without a new deal by Wednesday, TikTok’s US operations could face forced divestiture or total closure. This likely outcome has grown to be the focus of attention in current trade negotiations, eclipsing other important trade matters.
US Trade Representative Jamieson Greer goes further, announcing that negotiations on broader trade issues have been suspended. Unfortunately, the narrow focus on TikTok has overshadowed these important issues. Influencing US-China relations, TikTok has emerged to play an outsized role. Both countries are currently caught between national security concerns and their respective economic interests.
The framework deal currently in negotiations would enable TikTok to continue operating in the US. It seeks to address some of the security concerns raised by the Trump administration. With Bessent’s comments, it is impossible for President Trump to not have made it clear that national security comes first.
In fact, the manner in which President Trump negotiated the outcome could not have been clearer that leaving TikTok alone — or allowing the platform to operate independently — was not an option. He specifically stressed that no national security interests would be traded off for any agreement.