A framework agreement between the US and China allows a US TikTok spin-off, despite concerns about the algorithm. While US investors will control the new entity, China will license its algorithm and retain some influence. This deal, reached after talks in Madrid, sidesteps a previous US requirement for complete divestment from ByteDance, allowing the Chinese parent company to maintain a degree of control over the algorithm. The agreement ensures TikTok remains operational in the US, although the precise extent of Chinese involvement remains unclear, causing some analysts to question whether it fully complies with US law.

Prepared by Jonathan Pierce and reviewed by editorial team.