China and the United States have reached a “framework” deal on the future of TikTok’s US operations, potentially paving the way for American ownership, the country’s Treasury Secretary said on Monday.
The framework was agreed in talks that took place in the Spanish capital of Madrid, US Treasury Secretary Scott Bessent said. He also revealed that Chinese leader Xi Jinping and US President Donald Trump will “complete” the deal on Friday.
Trump took to Truth Social and stated that the talks had gone “very well.”
“The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly. A deal was also reached on a “certain” company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!” the President wrote on Truth Social.
China also confirmed a framework agreement but emphasised that no deal would be made at the expense of their firms’ interests as two of the world’s biggest economies continue to negotiate one of the most highly anticipated trade deals.
TikTok’s Chinese owner, ByteDance, has until Wednesday to secure a buyer for its US arm or risk being barred from operating in the country, as Washington cites national-security concerns.
The cut-off date for a sale has already been pushed back three times, with the latest extension set to expire on September 17.
US broadcaster CBS, citing unnamed sources, reported Monday that Oracle remains part of a consortium that could keep TikTok running in America if Washington and Beijing approve a final agreement.
The app’s ownership has been a recurring flashpoint in US-China trade discussions. Many analysts view control of the platform as a bargaining chip for Beijing as it seeks fewer tariffs and looser trade restrictions in one of its largest export markets.
After the second day of recent trade talks, negotiator Bessent said a “framework” deal had been reached that would safeguard US national-security interests, while US trade representative Jamieson Greer noted the arrangement still requires approval from national leaders and warned there would be no endless extensions.
China’s chief negotiator Li Chenggang stressed that any agreement must align with Beijing’s core principles and would undergo top-level review before it could take effect.
Earlier this year, the US Supreme Court upheld an April 2024 law banning TikTok unless ByteDance divests its American operations. The app briefly went offline when the law kicked in, before former President Donald Trump granted a 75-day reprieve.
The US Justice Department continues to argue that TikTok’s access to American user data represents “a national-security threat of immense depth and scale.” ByteDance has maintained that its US business is independent and said it has never shared user data with the Chinese government.
Potential buyers have included Oracle co-founder Larry Ellison, YouTube personality MrBeast, and billionaire investor Frank McCourt, media reports suggest, though no final deal has been reached.
