Beijing Blinks, TikTok’s US Sale Cleared for Takeoff
China approved TikTok’s US sale, ending a three-year standoff. Here's what it means for marketing teams.
China has officially approved the sale of TikTok's US operations, clearing the way for a deal that will proceed in the coming weeks and preserve access for 170 million American users, US Treasury Secretary Scott Bessent announced following a meeting between President Donald Trump and Chinese President Xi Jinping.
The approval resolves a three-year standoff over national security concerns that nearly forced the platform offline. "In Kuala Lumpur, we finalized the TikTok agreement in terms of getting Chinese approval, and I would expect that would go forward in the coming weeks and months," Bessent told reporters. China's Commerce Ministry confirmed it "will work with the US to properly resolve issues related to TikTok."
Deal Framework Remains Undisclosed
While both governments approved the sale framework, neither has disclosed details about the future US owner or purchase terms. The agreement allows ByteDance to retain partial ownership while complying with US mandates, according to officials familiar with the matter.
The deal protects access for 7 million US businesses that use TikTok for marketing and sales. In January, the Supreme Court unanimously upheld a law requiring ByteDance to divest or face a nationwide ban. The app briefly shut down before multiple government deadline extensions allowed negotiations to continue.
China's Ministry of Commerce retains oversight of TikTok's recommendation algorithm under export control rules, potentially limiting full technology transfer to any US buyer. TikTok CEO Shou Zi Chew previously stated the company remains "committed to protecting our users' data and complying with all relevant laws."
Leighton Cosseboom
Asian Market Implications for Brand Partnerships
The sale resolution carries significant weight for Asian marketing leaders managing cross-border campaigns. TikTok Shop has generated US$32 billion in gross merchandise value across Southeast Asia in 2025, establishing the platform as a critical social commerce channel despite ongoing conversion challenges.
Currently, 51.9% of marketers on the platform actively use TikTok Shop for social commerce, though many report difficulties converting engagement into sales. The platform's ad tools have proven effective at reducing customer acquisition costs. Collection Ads and Spark Ads cut cost per acquisition by 41% compared to traditional ad formats.
Micro-influencers with 10,000 to 100,000 followers deliver 8.2% engagement rates on TikTok, substantially outperforming macro-influencers at 5.3%. This performance gap makes the platform particularly valuable for brands testing regional markets with limited budgets.
Regional Hub Strategy Takes Shape
Singapore is emerging as TikTok's Asia-Pacific operational hub following the sale approval, with increased investment in regional content partnerships expected. The shift positions Singapore-based agencies and content creators for expanded collaboration opportunities as the platform separates US and international operations.
TikTok's US$1.5 billion Project Texas initiative, which localizes US user data storage on Oracle servers, has been operational since 2023 to address regulatory compliance. The infrastructure investment demonstrates the platform's commitment to meeting government requirements while maintaining service continuity.
The resolution allows marketing teams to proceed with long-term platform strategies that were previously uncertain. Brands can now finalize agency contracts, measurement frameworks, and content calendars that span both US and Asian markets without ban-related contingencies.
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