The United States and China have agreed to a framework deal over TikTok, according to Treasury Secretary Scott Bessent, following talks in Madrid. He indicated that the arrangement involves two private parties and that commercial terms have been settled, with the structure expected to shift the platform toward US-controlled ownership. China’s chief trade negotiator, Li Chenggang, also confirmed that a framework was in place and urged Washington not to continue its restrictions on Chinese companies, according to Reuters.
President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Friday to review the terms. Trump said on Truth Social that the deal covered a company popular with young Americans and suggested it would allow the platform to continue operating in the US.
Divestment deadline looms
The framework comes as TikTok’s parent ByteDance faces a September 17 deadline to divest the platform’s US business or face a potential nationwide shutdown. US Trade Representative Jamieson Greer said the deadline may need to be pushed back to allow the agreement to be finalised but emphasised that further ongoing extensions would not be granted.
Congress last year passed legislation prohibiting app store operators such as Apple and Google from distributing TikTok in the US, citing its status as a foreign adversary-controlled application. Trump postponed the ban in January with an executive order granting ByteDance an additional 75 days, followed by further extensions in April and June. Commerce Secretary Howard Lutnick said in July that the app would be shut down for US users if China did not allow greater American control over its operations.
Prospective buyers
Trump has previously said he had a group of wealthy individuals prepared to buy TikTok, naming Oracle chairman Larry Ellison and Tesla chief executive Elon Musk as possibilities. Other bidders have included artificial intelligence startup Perplexity and businessman Frank McCourt’s Project Liberty internet advocacy group, as reported by CNBC in January.
Although Trump has frequently described TikTok as a national security threat, his administration has taken a mixed approach. The White House opened its own TikTok account in August even as the platform faced potential closure.
