The United States has reached a “framework” agreement with China regarding the ownership of TikTok’s American operations, marking a significant development in trade and national security negotiations. The deal comes amid mounting pressure on ByteDance, TikTok’s parent company, to sell its US division or face a potential nationwide ban.
Framework Agreement Established During Madrid Trade Talks
US Treasury Secretary Scott Bessent confirmed that the framework agreement was finalized during trade talks in Madrid. The deal is designed to pave the way for US ownership of TikTok’s American operations. Bessent added that US President Donald Trump and Chinese President Xi Jinping are expected to officially finalize the agreement on Friday.
As of now, China has not released any official statement regarding the framework deal.
President Trump Reacts to TikTok Deal
President Trump shared his reaction on Truth Social, calling the Madrid trade talks “highly successful.” He confirmed that an agreement had been reached regarding TikTok, describing it as “a certain company that young people in our country very much wanted to save.
TikTok Sale Deadline Looms
ByteDance faces a looming deadline to find a US buyer for TikTok or risk a nationwide ban. In January, the US Supreme Court upheld a law that would prohibit the app in the US unless ByteDance sold its American division, citing national security concerns.
The US Justice Department has repeatedly highlighted that TikTok’s access to data from American users represents “a national-security threat of immense depth and scale.”
ByteDance Defends TikTok’s Independence
ByteDance has consistently maintained that TikTok’s US operations are fully independent, and no data has been shared with the Chinese government. The company has argued that banning the app could infringe on free speech rights for its 170 million American users.
Potential Buyers and Extended Deadlines
The deadline for TikTok’s US sale has been extended multiple times, with the latest extension set to expire on 17 September. Several high-profile potential buyers have been mentioned, including:
- Tesla CEO Elon Musk
- YouTube creator MrBeast
- Billionaire investor Frank McCourt
Context: US-China Trade Talks
Bessent’s announcement comes during the second day of US-China trade talks, which aim to ease tensions and resolve longstanding economic disputes between the world’s two largest economies. The framework agreement on TikTok is viewed as a critical step in strengthening economic cooperation while addressing US national security concerns.
