President Donald Trump on Tuesday announced that the agreement was reached between the United States and China for Tiktok to continue operating in their country.
The Trump administration reached an agreement with China that allowed Tiktok's popular social media applications to continue operating in the US after several months of tensions on data security issues and company ownership.
The agreement stipulated that the US assets in the US would be transferred to newly registered entities in the country with a majority of stocks held by American investors, while bytedance from China remained the largest shareholder with nearly 20%hold.
This step is seen as a compromise between Washington's needs to protect US user data from external access and the importance of Beijing who wants to maintain influence on one of its most successful technological companies.
The agreement also ended the uncertainty that had previously raised concerns among Consumers and Tiktok content creators who feared the application would be fully banned in the world's largest market.
In addition, new investments by US technology companies and funds are expected to strengthen the Tiktok operating infrastructure in the country, thus guaranteeing the compliance of the government's cyber security standards.
The market welcomes this development as confidence in the technology sector increases, while observers evaluate the decision as Trump's strategic step in negotiating the balance between domestic political pressures and trade relations with China.
