Chinese Officials Consider US TikTok Proposal

Chinese officials are considering the possibility of a US proposal for TikTok as discussions continue about ownership, security issues, and the platform’s future.

Chinese officials are warning about their concerns about the TikTok U.S. deal, signaling that the agreement is not yet finalized, even though Washington claims it is accomplished. There is a narrow, but extremely real risk-reward timeframe before the deadline for enforcement, according to TikTok.

Where The TikTok-US Deal Currently Stands

On December 18th, the U.S. unit reportedly signed an agreement that would place its American operations under a joint venture with Oracle that would satisfy the requirements of the “sell-off” condition in the Protecting Americans from Foreign Adversary Controlled Applications Act. 

TikTok Chief Executive Officer Shou Zi Chew told employees that the new company, “TikTok USDS Joint Venture LLC,” will come in effect on the 22nd of January 2026, which is one day prior to the date when the current deadline for enforcement ends.

Legally speaking, TikTok has been banned within the U.S. since January 19, 2025, as per the Senate-approved “Protecting Americans from Foreign Adversary Controlled Applications Act.”

However, enforcement has been put on hold through a string of Executive Orders issued by President Donald Trump on 20th January. 

The most recent order has extended the delay of enforcement to the end of December. There is an additional short extension that is in line with the January 23rd deadline that is now in the spotlight.

China’s Response: ‘Balance Of Interests, Not A Done Deal’

Chinese state media and officials from the commerce sector have responded to reports about the Oracle-led deal using cautious words on December 25th. 

According to China Daily:

“The Chinese government hopes that relevant parties can reach a solution regarding TikTok that complies with Chinese laws and regulations and achieves a balance of interests.”

Officials have also attributed that:

“To implement the important consensus reached during the phone call between the heads of state of China and the United States, the economic and trade teams of both sides previously reached a basic framework consensus on properly resolving issues such as TikTok through cooperation, based on mutual respect and equal consultation, the [Chinese government] spokesperson said.”

An official “expressed hope” that the U.S. side will “earnestly fulfill” its promises as reflected in their negotiations.

“The spokesperson also urged the U.S. to provide a fair, open, transparent, and non-discriminatory business environment for the continuous and stable operation of Chinese enterprises in the United States, so as to promote the stable, healthy, and sustainable development of China-U.S. economic and trade relations.”

Why Beijing Is Hesitant

China’s position is indicative of the structural issue, as it is not keen on an example where the U.S. can unilaterally force the divestiture of Chinese tech companies under security or political pressure. 

In tying TikTok with the “stable, healthy, and sustainable development” of China-U.S. economic relations, the officials are indicating that any approval for the deal will depend on how Washington behaves in the future.

Also, ByteDance hasn’t issued a full public statement, confirming the validity of all terms reported. Chinese comments continue to stress Chinese businesses within China’s U.S., suggesting additional issues to be discussed.

Practically, this implies that Beijing may still delay export or data transfer approvals when it believes that China is of the opinion that U.S. is overreaching.

The US Timeline And Political Framing

It appeared that the lengthy TikTok-U.S. story was coming to a end, a situation that has remained since the time that former President Trump issued his first executive order banning TikTok for 2020 partially because of COVID tensions.

There is a chance of a further extension or even a total ban, as numerous extensions were already issued during the course of negotiations to the present period that will expire on the 23rd day of this month.

Bottom Line

The tone coming from Beijing highlights the balance of interests and future policies for Chinese companies, as it is not wise to view the joint venture backed by Oracle as fully committed until both sides have formal confirmation of the fulfillment of all requirements.