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TikTok Reaches Agreement with US: New Structure & 'American' Algorithm - China's Gains

Published January 23, 2026, 06:17
TikTok Reaches Agreement with US: New Structure & 'American' Algorithm - China's Gains

TikTok has reached a final agreement with the US administration, ensuring its continued operation in America. The deal involves the creation of a new, autonomous US entity, fully separated from the Chinese parent company ByteDance. The platform's algorithm will be retrained using data solely from American users and stored in the US, in accordance with US laws. This agreement averts a potential ban on TikTok, previously scheduled for January 2025 if ByteDance failed to divest. Concerns revolved around the possibility of Beijing gaining access to US user data. Donald Trump had repeatedly delayed the enforcement of the ban. Despite the success for Washington, China retains significant advantages. ByteDance will continue to control the algorithm through licensing, as well as the TikTok brand and branding. This means the Chinese company will not lose the technological 'heart' of the platform. Chinese analysts believe this deal will create a template for other Chinese companies seeking to enter the US market, allowing them to do so through technology licensing and investment schemes without fully transferring their intellectual property. Companies like BYD and CATL are cited as potential beneficiaries.