Technology & Innovation

China calls it victory. What is there?


Suranjana TewariAsia’s business correspondent and

Osmond XiaBusiness correspondent

Getty Images in this image clarification, the Tiktok logo is displayed on the smartphone screen on April 5, 2025 in Shanghai, China. In the background, the American flag cuts the shape of Donald Trump's face. Gety pictures

The long -awaited deal on Tiktok may be close, as US President Donald Trump and his Chinese counterpart Xi Jinping have been appointed to discuss the conditions on Friday.

Senior officials from both sides have concluded the “framework” agreement this week, which indicates reports indicating that US Tiktok operations are sold for a group of American companies.

If the deal continues, it will be what one of the experts called a “rare breakthrough” in the trade negotiations of the United States – China – which settled a case that has issued headlines for years.

The BBC experts have told how the final deal for the 170 million American users may seem, and what Beijing might get in return.

The United States may not get a “secret sauce”

The Chinese government media calls it a “victory” for both countries, while Trump said, “I would like to do so for children.”

But much about “that” is still unclear.

Reports indicate that a new special version of the United States will be presented from the application. American operations can be purchased by a consortium that includes the Oracle technology giant, Andressen Horowitz and Silver Lake. BBC called the companies to comment.

But what is exactly on the table? At the heart of the conflict, there is a tiktok algorithm – the “secret sauce” that recommends the content of users based on their preferences and behaviors.

It is a key because it pays the application of application and attractiveness. Other companies have tried to re -create the algorithm – Instagram have rollers, and YouTube has short pants – but it is not good, and he is a former social media executive who worked in Snap and Viber who told the BBC, speaking on the condition that his identity is not disclosed.

“In general, the person who offers technology only knows how to do it better.”

US Treasury Secretary, Scott Payette, speaks to the media adjacent to the representative of trade, Jameson Jarir, following a meeting with the Chinese Deputy Prime Minister, on a day, China on commercial, economic and national security issues in Spain on September 15.Reuters

US Treasury Secretary Scott Beesen speaking to the media earlier this week

The Chinese owner of Tikhak, Baytanis, refused the concept of separation from the precious formula, and the company’s support.

But in a few upcoming touch, the highest cybersecurity organizations in China indicated that Beijing may allow the algorithm and other intellectual property (IP) to the owner of an American company. But it will not be transferred directly.

It is a great departure from the external position of China, the hard -line on the algorithm.

“There will be the US release on the release of” stripping of application programs. “

She adds that even limited access can reveal how technology has participated, moderate and targeting ads – all things that make the application very profitable.

“It is simply not logical to take the bytedance its most valuable assets when a lighter version can keep the application work without giving up the edge.”

But these changes will affect the user experience – the application may show less diverse content than users may see elsewhere, Dr. Gidka adds.

“A lighter, slower and more local version – while bytedance keeps the crown jewels in Beijing.”

The deal can go away some time

The user experience will remain the same, with the “Chinese characteristics”, according to US Treasury Secretary Scott Bessin, who leads the negotiating team in his team.

“Chinese characteristics” may be the problem – that is, in reality, a phrase that the Communist Party of China often uses to distinguish between its way of doing things.

American officials, including Trump, during his first term, have raised concerns about those who have access to Tiktok data, and the influence on the application on American users.

These questions about national security motivated legislation signed by former President Joe Biden in the law last year, which requires Tijk to hand over control of his American operations or a ban.

Trump has since changed his opinion, thanks to Tiktok to enhance the support of young voters in his victory in the elections in 2024.

But the sale must still satisfy American legislators and calm the concerns that started everything. Congress is likely to need to agree to any agreement, and there is already a political reaction in Washington on both sides of the corridor.

Republican legislator John Molinaar said he was concerned that the agreed framework still allows the influence and control of the Chinese government.

Simply “: The statute requires a complete chapter on the control of the” foreign opponent “, and the license will not seem to fulfill this test.

Getty Images People meet to attend a press conference about their opposition to a Tiktok ban on Capitol Hill in Washington, DC on March 22, 2023.Gety pictures

Drawing a probability of a ban on Tijk protests in the United States when it was first declared

Decisions of this size usually take months or even years to complete, and there are a number of problems that must be solved.

For one of them, it is not clear how the US -owned Tiktok will interact and run it with Tiktok elsewhere, which is still owned by bytedance.

Two, by being a private company, will need approval from its board of directors to continue the arrangement.

This adds a layer of complications even if the Chinese government – which imposes export controls on advanced technologies such as algorithms – agrees to the deal.

The American President himself, who has proven to be an unexpected commercial partner, can create new complications.

Beijing buys time – and the leverage

We know that Trump is keen on the Tiktok deal, and we know the reason.

It will be a big victory for his management. One in seven people in the world uses the application, which also doubles as a huge market for buyers and sellers around the world, from the United States to Germany, Indonesia to the Philippines.

“This is the only social media application that has not originated in the United States and therefore it is very valuable,” said former CEO of social media said.

He added that the average revenue for each user for most social media applications in the United States is higher than five to 10 times than other countries, as America is likely to constitute something nearly 50 % of the total bydance revenues.

Technological news site estimated that global revenues for bytedance amount to $ 39 billion (28.6 billion pounds) in 2024, where Tiktok represents $ 30 billion.

What we do not know yet is how China will earn this deal.

The computer world said that the license deal will allow the delivery of the algorithm under the winding – a strategic feature if the United States intends to launch new applications to compete with those who are already working in the country.

Instead of banning it, Tiktok gets to stay in the American market. Tiktok’s father will also keep the largest share in the application, along with the logo, coordination and brand.

Getty Images Tiktok, CEO SHOU ZI Chew, speaks during a Senate's hearing Gety pictures

Shu Zi Cyu, CEO of Tiktok, appeared in front of the US Senate to answer questions about national security concerns

The deal also creates the “Tiktok template” for other Chinese companies to spread their technology in the United States through licensing, investment and technology expert Kevin Show in his last news message.

He added that the Chinese ready -made technologies of national competitiveness, such as batteries and rare land, can now flow to the United States more easily.

“This is the formula that is likely to be applied, for example, BYD wants to jump to the American market, or Catl wants to increase its expansion to provide more American cars with their batteries.”

China can rotate the deal as a victory – it issues Chinese Chinese technology on its own terms. This may be an important influence of Beijing in commercial negotiations with Washington.

“The Chinese side has called the talks deeply, constructed and explicitly. This indicates that they are actually happy with how things are going.” “The question is when will there be a complete deal?”

Tiktok deal can buy the time so exactly. The United States is a huge export market for China, and China is the main buyer of American agricultural commodities. A high tariff will harm both. There are also export controls on both sides, especially our restrictions on rare land, which violates China.

Ultimately, a penetration on Tiktok seems to be progressing in China. The United States may get a deal, but the coup may not have been in mind.

“The deal may work on paper – but in practice, you will always sit under a cloud,” said Dr. Gidka.

“The US Tiktok will look the same app, but behind the scenes, it will be run on a borrowed symbol, the war wall data, and the political confidence that can disappear overnight.”

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