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U.S. and Chinese officials announced a framework agreement on Monday that could shift TikTok’s U.S. operations to American-controlled ownership. The deal, expected to be confirmed in a Friday call between President Donald Trump and President Xi Jinping, marks a rare breakthrough in tense trade negotiations.
Treasury Secretary Scott Bessent said a looming September 17 deadline pushed negotiators toward compromise. While the deadline may be extended 90 days to finalize details, Bessent emphasized U.S. priorities lie in safeguarding national security, while China remains focused on preserving TikTok’s cultural features.
The potential agreement follows a 2024 U.S. law requiring ByteDance, TikTok’s Chinese parent company, to divest over concerns about data privacy and foreign influence. Lawmakers fear Beijing could access U.S. user data or manipulate content. TikTok, with 170 million American users, remains politically sensitive, especially as Trump credited the app with boosting his re-election campaign.
Trump hinted at China possibly retaining some stake, but details remain unclear. Chinese officials suggested intellectual property rights, including TikTok’s algorithm, may be licensed rather than transferred.
Talks in Madrid between U.S. and Chinese delegations also addressed wider trade disputes, including tariffs, semiconductor restrictions, and China’s rare earth exports. While Washington pushes allies to impose tariffs on Chinese goods tied to Russian oil imports, Beijing criticized such moves as “unilateral bullying.”
The discussions come amid broader efforts to ease U.S.-China trade tensions, with Trump signaling interest in a potential summit with Xi. However, analysts warn the TikTok deal still faces hurdles, including approval from Congress and final agreement on technology transfer.
The announcement coincided with Beijing launching an antitrust probe into U.S. chipmaker Nvidia, viewed as retaliation against Washington’s tech restrictions, highlighting ongoing strains in U.S.-China relations.
