China's Green Light: TikTok's Transition to U.S. Control

China has officially approved a crucial agreement regarding the transfer of TikTok's U.S. operations, marking a significant development in the ongoing saga of the popular short video app. The announcement was made by U.S. Treasury Secretary Scott Bessent, hinting at a swift progression of events in the upcoming weeks and months.

The deal comes in the wake of a 2024 U.S. law, mandating the sale of TikTok's operations in the U.S. by January 2025 to address national security concerns. President Donald Trump had endorsed this plan, allowing a consortium of American and international investors to take charge, with ByteDance retaining a minimal stake.

While ByteDance agreed to appoint only one board member to the new entity, the remaining six will be Americans, ensuring compliance with the stipulated regulations. However, U.S. Representative John Moolenaar expressed concerns regarding the licensing agreement of TikTok's algorithm as part of this deal.