Beijing Signals Cautious Approval of TikTok’s U.S. Divestiture, Demands ‘Lawful and Balanced’ Resolution

The Chinese government broke its silence on the latest developments regarding TikTok’s future in the United States on Thursday, expressing a cautious but firm stance as the short-video platform nears a historic restructuring. Speaking from Beijing on December 25, 2025, a spokesperson for China’s Ministry of Commerce stated that the government expects all involved parties to pursue a "lawful and balanced" resolution. This statement comes just days after TikTok’s parent company, ByteDance, signed binding agreements to surrender majority control of its U.S. operations to a consortium of global investors, a move designed to avert a total ban in its most lucrative market.

Ministry spokesperson He Yongqian addressed the media during a regular press conference, emphasizing that any final deal must strictly adhere to Chinese laws and regulations while ensuring a fair equilibrium between the interests of all stakeholders. The remarks signal Beijing’s willingness to permit the deal to proceed, provided that Chinese intellectual property and export controls particularly regarding the app’s powerful recommendation algorithm are respected. China has repeatedly urged the United States to provide a non-discriminatory and transparent business environment for Chinese enterprises, and today’s statement serves as a reminder that the world’s second-largest economy is closely monitoring the transition.

The landmark deal, which has been months in the making following a series of executive orders from the Trump administration, will see the creation of a new entity known as TikTok USDS Joint Venture LLC. Under the terms of the agreement, ByteDance will retain a 19.9% stake in the new venture, which is the maximum ownership permitted under the revised U.S. divestiture laws passed last year. A trio of primary investors tech giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment group MGX will each take a 15% share. The remaining equity will be held by a mix of existing ByteDance investors and other U.S.-based entities, bringing the total non-ByteDance ownership to over 80%.

This structural shift aims to satisfy long-standing U.S. national security concerns by placing American user data and content moderation under the oversight of a majority-American board of directors. Oracle is set to play a pivotal role, not only as a stakeholder but as the technical custodian of the platform, managing the storage and security of data for more than 170 million American users. While the agreement has been described by some as a "win-win" that preserves the app for its massive user base, the Chinese Ministry of Commerce’s insistence on "legal compliance" underscores the complexity of transferring a platform built on sensitive Chinese-developed technology.

Industry analysts suggest that the "balanced" approach mentioned by Beijing likely refers to the ongoing negotiations regarding the licensing of TikTok’s proprietary algorithm. While the U.S. entity will operate the app domestically, the underlying technology remains a point of contention between Washington’s demands for total separation and Beijing’s export restrictions. As the deal moves toward an expected closing date of January 22, 2026, the global tech community is watching to see if this hybrid ownership model can serve as a template for resolving future cross-border digital disputes. For now, the focus remains on whether the United States will meet China’s call to "work in the same direction" to ensure the stable and sustainable operation of the platform during this transition.