US-China Reach Framework Deal on TikTok Ownership

In a significant diplomatic breakthrough, the United States and China have agreed on a framework to transfer ownership of TikTok to a U.S.-controlled entity, according to U.S. Treasury Secretary Scott Bessent A. The announcement follows two days of high-level trade talks in Madrid, where negotiators from both countries worked to resolve long-standing concerns over national security and data privacy.

• The deal aims to shift TikTok’s ownership from Chinese parent company ByteDance to an American buyer.
• President Donald Trump and Chinese President Xi Jinping are expected to finalize the agreement in a scheduled call on Friday .
• The current deadline for divestiture, set for September 17, may be extended by 90 days to allow for final negotiations .
• Bessent emphasized that while China is keen on preserving TikTok’s “Chinese characteristics” as a form of soft power, the U.S. remains focused on national security concerns .

The framework deal reflects a rare moment of cooperation amid broader trade tensions. Trump, who has credited TikTok with helping him connect with younger voters, has resisted a full ban, citing its cultural relevance and popularity A. Meanwhile, Chinese officials have described U.S. demands as “unilateral bullying,” but acknowledged progress toward easing investment barriers .

What’s Next: The commercial terms of the deal remain undisclosed, and Congressional approval may be required due to legislation passed in 2024 mandating divestiture over surveillance fears A. Whether ByteDance will transfer its core technology or algorithms is still unclear.