A potential resolution to the long-standing U.S.-China standoff over TikTok could be unveiled this week, as negotiators from both nations appear close to finalizing a framework that would allow the app to remain operational under American ownership. While the exact terms remain under wraps, early indications suggest a U.S.-based spin-off of TikTok, owned by a consortium of American investors, would continue to leverage the platform’s core algorithm—originally developed by China’s ByteDance—under a licensing agreement. The algorithm has been the central point of contention. It’s the driving force behind TikTok’s viral content delivery, personalization, and addictive user experience, making it the app’s most valuable asset. Chinese officials have been reluctant to relinquish control over it, fearing that full U.S. ownership would compromise national interests. Meanwhile, U.S. lawmakers have long expressed concerns that the algorithm could be used to influence American users or expose sensitive data to foreign interference. However, new developments suggest a compromise may have been reached. Wang Jingtao, deputy head of China’s cyber security regulator, confirmed to reporters that the agreement would include licensing TikTok’s intellectual property, including its algorithm, to a U.S.-based entity. ByteDance would retain ownership of the core technology but would entrust the management of TikTok’s U.S. user data and content moderation to American partners. According to sources familiar with the negotiations, TikTok is developing a standalone U.S. version of its app, which would rely on a version of the algorithm trained using American user data. This approach would allow the U.S. to maintain control over data and content policies while still benefiting from the algorithm’s performance. The deal comes amid mounting pressure to avoid a nationwide ban. Congress passed a law in 2024 under the Biden administration mandating the sale or ban of TikTok unless a security agreement was reached. The original deadline was January, but President Trump has repeatedly delayed it—three times so far—pushing the current cutoff to September 17, this coming Wednesday. Treasury Secretary Scott Bessent announced on Monday that a framework had been reached during trade talks in Madrid, Spain. He confirmed that while commercial details with the American investors are still being finalized, progress is being made. Bessent declined to provide specifics but emphasized that the agreement would address both national security and economic concerns. Oracle, which already stores TikTok’s U.S. user data in its cloud infrastructure, is expected to play a central role in the new U.S. operating entity. Reports from CBS indicate that Oracle will lead a consortium of American companies overseeing TikTok’s U.S. operations. This would make Oracle chairman Larry Ellison—a close ally of Donald Trump and recently the world’s richest person—part of the ownership group. With over a billion users worldwide, TikTok already surpasses Elon Musk’s X in global reach. As the deal nears completion, the stakes are high—not just for tech giants, but for the future of digital sovereignty, data privacy, and the global influence of social media.