TikTok’s U.S. App May Still Use ByteDance’s Algorithm

Following intense negotiations, a framework deal between U.S and China has been reached, which may let TikTok still use ByteDance’s Chinese recommendation algorithm under a licensing agreement (via Financial Times).

Treasury Secretary Scott Bessent said that a key moment in reaching this tentative agreement came when President Donald Trump signaled that he was willing to allow TikTok to “go dark” in the U.S. rather than accept a deal that compromised national security.

Under the framework negotiated in Madrid, TikTok’s U.S. operations would shift toward American control. The law passed in 2024 demands that ByteDance divest its stakes or face a nationwide ban. That law remains central. However, terms of the deal appear to preserve some intellectual property rights, including the algorithm that drives TikTok’s recommendation engine.

Officials say U.S. user data and content security would be managed under stricter oversight. ByteDance would “entrust operation of U.S. data and content security” to American partners, though the specific technical controls are still being worked out.

The algorithm has been the flashpoint in the dispute. U.S. lawmakers, security experts and regulators have raised fears that ByteDance’s control over recommendation systems could enable propaganda, manipulation, or influence operations. China qualifies such algorithms under its export control laws, which complicates any transfer or sale.

Congress has made clear it will closely watch the final terms. Lawmakers from both parties have emphasized that the agreement must comply with the law requiring full divestiture or risk violating U.S. national security statutes.

Trump and Chinese President Xi Jinping are expected to speak in coming days to finalize or confirm the terms. In parallel, US Treasury Secretary Bessent and trade representatives have indicated China may request trade or tariff concessions in return for agreeing to more sweeping technology transfer or licensing terms.