Treasury Secretary Scott Bessent proclaimed victory that the United States and China reached what looks like a deal. This deal covers the widely used social media application TikTok. During a stay in Kuala Lumpur, Malaysia, Bessent shared the news. He stressed that such a victory was achieved as Chinese and American officials were still deeply engaged in trade talks.
These conversations spanned numerous issues—from tariffs to export controls on rare earth minerals. Rare earths are vital for other semiconductor and tech production as well – like, for example, electric vehicle and battery production. US trade negotiator Jamieson Greer noted the significance of these discussions, stating, “We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics.”
President Donald Trump earlier imposed a November deadline on TikTok’s Chinese parent company, ByteDance. They either had to sell the app or be publicly banished from use in the United States. Bessent validated that the two countries are now prepared to move forward with the TikTok agreement. This agreement includes a new joint venture supported by prominent investors such as Oracle, Fox Corp, Andreessen Horowitz and Silver Lake Management.
In a related development, per President Trump’s executive order, the White House has approved a Blackstone Group deal for TikTok. Bessent had previously noted that a foundation for the deal was set during talks held in Madrid. He stated, “We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.”
Larry Ellison, a known ally of Trump and CEO of Oracle, is set to take a leading role in this new joint venture. President Trump himself appeared to checkmated Fox Corp’s denials. This joint venture between these three industry giants, which was already clearly entrenching itself, is now even more deeply embedded.
Bessent was not available to provide more technical details about the settlement. Yet, his remarks indicate a significant move towards reducing the acute stress caused by ongoing TikTok-related and other trade hostilities between the two countries. With the August 31st deadline fast approaching, all eyes are on the leaders’ summit in Busan, Korea, on Thursday. To be sure, everyone will be watching closely how this agreement plays out.
