After four extensions of the ban, TikTok’s fate in the US has become clearer.
On the evening of September 19, following a call between the leaders of China and the US, state broadcaster CCTV reported that China’s position on TikTok was unchanged: the government respects companies’ wishes, supports negotiations based on market rules, and welcomes solutions that comply with Chinese law while balancing all parties’ interests.
In the early hours of September 20, ByteDance announced it would move forward in accordance with Chinese legal requirements, allowing TikTok’s US entity to continue serving American users.
The decision secures TikTok’s survival in the US, though uncertainty remains over what form the business will take and who will ultimately control it.
From Madrid talks to another Trump extension
TikTok’s path to this outcome began earlier in September. Trade delegations from China and the US met in Madrid on September 14 and 15, where both sides reached a preliminary framework agreement to resolve the issue through cooperation, reduce investment barriers, and strengthen economic ties.
Days later, on September 16, US President Donald Trump signed another executive order pushing the deadline to December 16, his fourth extension of the ban’s enforcement grace period.
TikTok’s US operations have faced repeated upheavals. On January 19, the day before Trump took office, the ban briefly came into effect, forcing TikTok and other ByteDance apps off US app stores. Within half a day, Trump was sworn in and immediately delayed the ban, giving TikTok a reprieve.
During that window, Trump repeatedly claimed multiple buyers were vying for TikTok. Earlier this year, he floated the idea of a joint venture in which the US would hold a 50% stake. On September 16, he told reporters that a deal had been reached with TikTok, adding that there’s “a group of very large companies that want to buy it.”
According to The New York Times, people familiar with the matter said ByteDance planned to spin off TikTok’s US operations into a new company. Some existing investors would retain stakes, while new US investors would be added, reducing Chinese ownership below 20%.
Two other sources said Oracle, which provides TikTok’s cloud services, was expected to invest, with private equity firm Silver Lake also in talks. Existing investors such as General Atlantic and Susquehanna International Group might transfer their holdings to the new entity.
A senior White House official dismissed speculation about the framework, saying that aside from official announcements, “any details about the TikTok deal are purely guesswork.”
Mixed reactions from merchants, users, and staff
For merchants, ownership questions are secondary, for the key is whether TikTok can keep operating. When reports of a framework deal surfaced on September 15, sellers welcomed it. Some US users, however, worried they could be forced onto a separate app.
In July, Reuters reported that TikTok was preparing a US-only app with its own algorithm and data system, internally codenamed “M2.” Similar to how Douyin operates independently in China, the app would not appear in overseas app stores and would rely exclusively on US user data. ByteDance denied the report, with an employee telling 36Kr that the plan had effectively stalled.
Amid such uncertainty, employees also voiced unease. With TikTok’s US operations possibly changing hands, staff worried about layoffs and restructuring. Some reportedly joked that listing TikTok on their resume would be proof of resilience.
A blow to ByteDance’s global ambitions
If TikTok’s US business is sold, it would be a major setback for ByteDance. TikTok has long been central to the company’s growth, particularly in overseas markets.
By 2023, TikTok had become ByteDance’s main revenue driver. According to The Information, in 2024, overseas revenue—led by TikTok—rose 63% year-on-year, even as ByteDance’s profit growth and margins slowed. The segment accounted for roughly one-quarter of the company’s total income.
The US has been the largest contributor. TikTok Shop’s US operations generated USD 8 billion in 2024, about one-quarter of its global e-commerce revenue. LatePost reported that TikTok’s e-commerce team set nearly 100% growth targets for 2025, with the US expected to lead, aiming for close to 200% growth.
Uncertainty over its US future has also pushed TikTok and TikTok Shop to expand aggressively in East Asia, Europe, and Latin America. These efforts are bearing fruit. On September 5, TikTok announced it had surpassed 200 million monthly active users in Europe, which is about one-third of the continent’s population. The figure represents an uptick from 175 million the previous year.
Earlier, during the third extension of the ban, 36Kr interviewed Nie Huihua, a professor at Renmin University’s School of Economics. He argued a full ban was unlikely and predicted TikTok would be forced to give up control or equity:
“They might cede actual control, like a trustee model, while keeping most of the shares. That way, both sides can save face.”
TikTok’s current trajectory appears to validate his assessment. Nie emphasized that Chinese companies expanding globally must manage business-to-government relations carefully, and that’s an observation that remains relevant today.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Lan Jie for 36Kr.