ByteDance Deal Seen as Prelude to U.S.-China Trade Agreement

Nikolay Stoykov, Managing Partner at Alaric Securities, on “In Development”, Bloomberg TV Bulgaria

• The ByteDance deal may mark a turning point in U.S.–China trade talks.
• Washington seeks to protect user data while ByteDance faces pressure from both powers.
• The agreement could set a global precedent for regulating major tech companies.

The ByteDance deal may signal progress toward a broader U.S.–China trade agreement, according to Nikolay Stoykov, Managing Partner at Alaric Securities.

He explained that a framework deal would not exist without meaningful steps toward a larger trade settlement. “It’s hard to imagine such an agreement without serious movement on the bigger trade talks,” Stoykov told Bloomberg TV Bulgaria.

Data Protection at the Core

The ByteDance deal aims to protect user data, Stoykov said. Once the U.S. government secures control over sensitive information, other parts of the agreement become more straightforward to implement.

“The company that will operate in the U.S. must be separate from ByteDance,” he noted. “It will have its own board of directors and make independent decisions.”

Moreover, TikTok’s algorithm remains under debate. U.S. regulators may influence how the platform’s design evolves to match global security standards.

ByteDance Caught Between Two Giants

According to Stoykov, ByteDance stands between two powerful rivals with conflicting interests – the U.S. and China.

“The deal is not ideal for the company. It may not even be the best outcome for U.S. consumers. However, it offers the strongest protection for American national security,” he argued.

He also warned that the ByteDance deal creates a precedent. Other countries could adopt similar measures against U.S. tech firms like Facebook. “At this stage, that option looks realistic,” Stoykov added.

Data as the New Gold

Stoykov stressed that data from social networks carries huge value. It reveals user interests and can shape national security.

For example, during elections, access to voter data could shift results. “Whoever controls that information can change the odds in almost any country,” he said. “Today, data is gold, and algorithms are the gold prospectors.”

ByteDance Valuation and Future Outlook

Stoykov argued that ByteDance’s $300–400 billion valuation is reasonable compared with large U.S. tech companies. Moreover, TikTok’s popularity, especially in the U.S., drives strong growth potential.

He explained that the ByteDance deal, structured around algorithm licensing, allows the company to secure long-term revenue. “That structure looks like a sound solution,” Stoykov said.

What Comes Next?

The ByteDance deal may reshape global tech regulation. It also raises broader questions about artificial intelligence and data sovereignty.

“How will AI-driven companies manage secure data storage? And how will governments balance innovation with national security?” Stoykov asked.

Watch the full interview in the video below.

Source: BloombergTV Bulgaria

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