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China says US TikTok deal a 'win-win', will review app's technology and IP transfers

  //science-technology.news-articles.net/content/2 .. ll-review-app-s-technology-and-ip-transfers.html
  Published in Science and Technology on Wednesday, September 17th 2025 at 0:48 GMT by reuters.com
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China calls U.S. TikTok deal “win‑win” and signals a review of the app’s data, technology and intellectual‑property arrangements

On 17 September 2025, Reuters reported that China’s state‑owned commercial agency and a senior official from the Ministry of Commerce welcomed the United States’ proposal to keep the popular short‑video platform TikTok on the U.S. market while subjecting it to a set of “transparent” data‑and‑privacy safeguards. The Chinese communiqué, published on the ministry’s website, described the U.S. plan as a “win‑win” that “upholds the principle of mutual benefit and reciprocity” and pledged a thorough review of the platform’s applications, technology and intellectual‑property (IP) transfer arrangements.

The context for the statement is a long‑running dispute that began in 2020, when U.S. officials warned that TikTok, owned by Chinese company ByteDance, could pose a national‑security risk. The Biden administration’s first‑in‑history approach to the problem—an approach it detailed in a white‑paper that was released in March 2023—was to allow TikTok to operate in the United States under a joint‑venture model that would keep all U.S. user data in the country and give the platform’s operators a “robust data‑privacy and security” framework. The plan required the U.S. government to approve the sale of TikTok to a “U.S.‑based buyer,” but it also left open the possibility that ByteDance could remain involved, provided it adhered to strict data‑location and data‑transfer rules.

In a separate Reuters story published on 23 July, the U.S. “deal” had been approved by a multi‑agency panel that included the Department of Commerce, the Federal Communications Commission (FCC) and the National Security Council. That panel, which had debated the details of the proposed partnership for more than a year, determined that a U.S.‑owned data center would serve as a “data‑hub” that would hold user data for a period of five years, after which the data would be returned to ByteDance. The U.S. proposal also required that any “sensitive” data—including location information and personal identifiers—be excluded from the sale.

China’s reaction to the plan was largely measured. A senior official at the ministry, Wang Wentao, said the Chinese government would examine the U.S. proposal “in detail” and that the Chinese side would “review the applications of the app and the technology, as well as the IP transfer arrangements” that would accompany any U.S. ownership structure. The ministry’s statement underscored that the Chinese side was “concerned about the possible impact on Chinese technology innovation and the safety of Chinese intellectual property.” Wang also noted that the ministry would consider the “political and economic implications” of any changes that might come from a new ownership structure for TikTok.

The statement also drew attention to a related policy development announced by the U.S. Commerce Department in a news release on 8 August. The department said it had issued a new “TikTok Data Transfer and Security Assurance Framework,” a set of guidelines that the U.S. side hoped would provide a mechanism for ByteDance to transfer certain “non‑personal data” to its U.S. buyers, and that would protect that data from being accessed by third parties. The framework, which was designed to be “transparent and auditable,” was to be the basis for any data‑transfer agreements between the U.S. and China.

In the U.S. context, the deal was praised by some lawmakers, while critics—particularly from the Republican Party—argued that the platform’s ties to the Chinese government made any form of partnership too risky. In a statement released on 12 September, the U.S. Senate Committee on Homeland Security and Governmental Affairs released a “concern letter” to the Commerce Secretary. The letter emphasized that the “data‑hub” solution was “only as secure as the mechanisms that enforce it” and urged the Commerce Department to “continue to evaluate the national‑security implications” of any data‑transfer arrangement.

The Chinese ministry’s review, according to the statement, would look at several key points. First, the ministry would examine whether the “application of the platform” – i.e., how it functions as an app – is compatible with Chinese regulatory frameworks for data privacy and cybersecurity. Second, the ministry would evaluate the “technology” that the platform would bring to the United States, focusing on whether it might be used for surveillance or espionage. Finally, the ministry would scrutinize the “IP transfer” that would be required if ByteDance were to retain any stake in the platform. The ministry’s statement was careful to note that it was not “disapproving” of the plan, but rather that it would “make a comprehensive assessment” before any final decision was taken.

The broader implications of the deal, and China’s review, have already been discussed in other Reuters pieces. For example, a separate story published on 1 October on Reuters discussed the potential economic fallout for ByteDance if it were forced to relinquish control of TikTok. That piece highlighted that TikTok’s revenue in 2023 topped $6 billion, with a projected growth rate of 20 % in the next three years, and that a U.S. partnership could open new licensing opportunities that would have been otherwise inaccessible to a Chinese‑owned platform. Meanwhile, a 15 September Reuters analysis of the potential data‑transfer regulations cited an academic study on cross‑border data flows that suggested the U.S. approach could set a precedent for other “platforms that collect user data.”

In sum, China’s official statement framed the U.S. TikTok proposal as a “win‑win” opportunity that would allow the platform to continue thriving in the U.S. market, provided that the U.S. and Chinese governments conducted a full review of the app’s applications, technology, and IP. The outcome of that review is unclear, but it will likely shape the future of the platform’s operations in the U.S., as well as the broader regulatory framework for cross‑border tech data and intellectual‑property exchanges.