TikTok Ban Averted As U.S. And China Strike Agreement

The U.S. and China have struck a deal to keep TikTok alive in America, ending months of uncertainty over whether the app would be banned. Treasury officials said a framework agreement is in place, with President Trump and Chinese leader Xi Jinping expected to finalize terms later this week.

For animators and studios, that means TikTok, home to 150-170 million U.S. users, will remain a vital hosting platform for promoting their work.

Why it matters: TikTok’s U.S. user base has become indispensable for large parts of the animation industry. For indie creators, the app functions as a launchpad for indie work. A ban would have left creators scrambling for alternatives with far smaller reach.

For studios, it’s a key marketing platform. Campaigns like #Gentleminions showed how short-form video can reshape audience behavior at the box office.

The details:

• The U.S. and China agreed on a framework ensuring TikTok operations continue under stricter oversight.
• The American buyer is expected to be a group led by Oracle co-founder Larry Ellison, though not yet confirmed.
• The deal reportedly includes safeguards around U.S. user data and licensing of TikTok’s core algorithm.
• The agreement is tied to broader trade negotiations and may pave the way for a Trump–Xi meeting later this year.

Background:

• Congress passed a bipartisan law requiring TikTok’s Chinese parent ByteDance to divest its U.S. assets.
• Trump extended enforcement deadlines multiple times while pursuing a buyer.
• Without a deal or another extension, TikTok would have been banned this week.

The bottom line: For independent animators and studios alike, TikTok’s survival means continued access to a massive, highly engaged audience. Whether promoting shorts, building fanbases, or driving viral marketing campaigns, the app remains a vital stage for the animation industry.