[A photo representing a user on TikTok. Photo Credit to Nordsko Media]

A recent agreement with China ensures U.S. companies will be able to oversee and manage the TikTok algorithm that is crucial to the app’s success and Americans will hold a majority of seats on a board supervising U.S. operations, according to the White House.

Congress had previously passed legislation banning TikTok, scheduled to take effect in January, but the ban was postponed through orders signed by the White House. 

This delay coincides with Washington’s effort to negotiate a sale of TikTok’s U.S. operations by its parent company, ByteDance, to an American firm.

TikTok had earlier been told it faced the possibility of a ban on American soil if its U.S. business was not sold.

That warning prompted the Biden administration to approve a ban and led TikTok to briefly suspend operations in the United States.

Although the threat of a nationwide shutdown was later revoked with a change in administration, the White House has continued to press for a deal with China.

U.S. officials have cited concerns that ByteDance may be sharing user data with the Chinese government and allowing Chinese authorities to manipulate TikTok’s algorithm.

Treasury Secretary Scott Bessent announced in Madrid that a framework for a TikTok agreement had been reached with Chinese officials. 

Shortly afterward, White House press secretary Karoline Leavitt confirmed that six  Americans will occupy seats on a seven-member board responsible for TikTok’s U.S. operations.

Leavitt said on Fox News, “And let me just be very clear. This deal means that TikTok will be majority-owned by Americans in the United States.”

She further revealed the U.S. tech giant Oracle will be responsible for app’s data and security systems.

“We are 100% confident that a deal is done, now that deal just needs to be signed and the president’s team is working with their Chinese counterparts to do just that,” she added.

On the Chinese side, officials have been less obvious about the nature of the supposed TikTok deal.

China’s official state news agency Xinhua quoted Xi Jinping as saying Beijing "welcomes negotiations over TikTok.”

 China’s Commerce Ministry added in a statement, “China's position on TikTok is clear: The Chinese government respects the wishes of the enterprise, and welcomes it to carry out commercial negotiations in accordance with market rules to reach a solution compliant with China's laws and regulations, and strikes a balance of interests.”

Despite the reassurances, the exact details of the agreement remains ambiguous, as many parties are involved in the possible sale of TikTok’s U.S. operations. 

The main point of interest seems to be who will hold control over the algorithm that dictates what content is delivered to TikTok’s 170 million American users.  

The White House has yet to clarify whether an American buyer would continue to use TikTok’s existing algorithm infrastructure or would need to develop a new one.

For now, the fate of TikTok in the United States remains unclear as negotiations continue between Washington and Beijing.