US and China Reach TikTok Framework Deal Ahead of Trump-Xi Call
US and Chinese officials have announced a framework deal to shift ownership of TikTok to a US-controlled entity, easing tensions ahead of a scheduled call between President Donald Trump and President Xi Jinping this Friday.
The agreement follows months of stalled negotiations, with the popular short-video app—used by 170 million Americans—at the centre of national security concerns. Both countries hope the deal will help calm a wider trade conflict that has disrupted global markets.
US Treasury Secretary Scott Bessent confirmed that the outline of the agreement was reached during trade talks in Madrid. He noted that the 17 September deadline for TikTok’s divestment might be extended by 90 days to finalise details.
Security and Culture at the Heart of Negotiations
Bessent stated the deal would address US security concerns while maintaining the “Chinese characteristics” of the app. “They view those features as soft power,” he said. “We’re focused on national security.”
While full terms remain under wraps, Bessent declined to confirm if TikTok’s Chinese parent company ByteDance would transfer its technology or algorithms to the US buyer. Chinese officials have suggested that the deal could involve licensing intellectual property.
President Trump also commented, saying the matter will be discussed with President Xi on Friday. He added on Truth Social: “A deal was also reached on a ‘certain’ company that young people… wanted to save. They will be very happy!”
Congressional Approval Still Likely Needed
The deal may require approval from Congress, which passed a law in 2024 mandating TikTok’s divestment over fears that US user data could be accessed by the Chinese government. Despite this, the Trump administration has avoided forcing a full ban on the app, aware of its popularity—particularly among younger voters.
Trump has 15 million followers on the platform and credits TikTok with boosting his re-election campaign. The White House also recently launched its own official account.
Broader Trade Talks and Strategic Stakes
The framework agreement was announced after the fourth round of US-China talks held in Europe since May. Delegations led by Bessent and Chinese Vice Premier He Lifeng have been working to defuse the trade dispute, which has included mutual tariffs and bans on rare earth exports.
A source close to the talks said that a failure to reach a TikTok deal would have jeopardised any planned summit between Trump and Xi this autumn. The leaders will now decide during Friday’s call whether a face-to-face meeting will go ahead.
Chinese trade negotiator Li Chenggang criticised US policies, calling them “unilateral bullying” and warning that Beijing could not be expected to cooperate while its firms faced continued restrictions.
The TikTok deal was revealed on the same day China launched an antitrust investigation into US chipmaker Nvidia, a move widely viewed as retaliation against US export controls.
with inputs from Reuters
