US, China Reach Framework Deal on TikTok Ownership; Trump, Xi Call Friday
- tech360.tv
- Sep 16, 2025
- 3 min read
U.S. and Chinese officials announced a framework agreement for short-video app TikTok to transition to U.S.-controlled ownership. U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to confirm the potential deal during a call on Friday.
This potential agreement for the popular social media app, which boasts 170 million U.S. users, represents a rare breakthrough in months of talks. These discussions between the world's largest and second-largest economies aim to de-escalate a wide-ranging trade war that has unsettled global markets.
U.S. Treasury Secretary Scott Bessent stated that a Sept. 17 deadline, which could have disrupted TikTok in the U.S., motivated Chinese negotiators to reach the potential deal. Secretary Bessent met with Chinese negotiators in Madrid for two days of talks.
Secretary Bessent noted the deadline could be extended by 90 days to allow for finalisation of the deal. He declined to discuss specific details but affirmed the commercial terms would preserve the cultural aspects of TikTok, important to Chinese negotiators.
Bessent explained that Chinese negotiators viewed the app's "Chinese characteristics" as "soft power," while the U.S. prioritised national security. President Trump, when asked about China potentially retaining a stake, said a decision had not been made, pending his discussion with President Xi on Friday.
This marks the second time this year that both sides have announced they were nearing a TikTok agreement. An earlier announcement in March ultimately did not materialise.
Any agreement could require approval from the Republican-controlled Congress. In 2024, Congress passed a law mandating divestiture due to concerns that TikTok's U.S. user data could be accessed by the Chinese government, enabling Beijing to spy on Americans, or conduct influence operations.
However, the Trump administration has consistently refrained from forcing a shutdown. Such an action could anger the app's millions of users and disrupt political communications. President Trump has credited the app with contributing to his re-election last year, and his personal account has 15 million followers. The White House launched an official TikTok account last month.
President Trump stated on his Truth Social platform that a deal was reached for a company young people in the country wanted to save, making them "very happy." He added he would speak with President Xi on Friday and that the relationship remained "a very strong one."
Secretary Bessent did not specify whether parent company ByteDance would transfer control of the app's underlying technology to the unnamed U.S. buyer. Wang Jingtao, an official at the Chinese cyberspace regulator, suggested the deal could involve licensing intellectual property rights, including algorithms.
Beyond TikTok, the U.S. has cited national security concerns to block semiconductor shipments and other advanced technology to China. Washington has also banned Chinese products it believes could be used for spying, or intelligence gathering.
China's top trade negotiator, Li Chenggang, described these U.S. concerns as "unilateral bullying." Li emphasised that the United States could not simultaneously ask China to address its concerns while continuing to suppress Chinese companies.
Li stated that the two sides had reached a "basic framework consensus" on resolving TikTok-related issues. This phrasing slightly varied from the language used by the U.S. side regarding the agreement.
The U.S.-China meeting at the Spanish foreign ministry's baroque Palacio de Santa Cruz represented the fourth round of talks in four months. These discussions aimed to address strained trade ties and TikTok's divestiture deadline.
Delegations led by Secretary Bessent and Chinese Vice Premier He Lifeng have convened in various European cities since May. Their objective has been to resolve a trade war characterised by reciprocal tariff increases and a halt in rare earths flow to the United States.
President Trump has repeatedly expressed interest in a meeting with President Xi, and China is seeking to host Trump in Beijing for a summit. Secretary Bessent indicated that the leaders would discuss a potential meeting during their Friday call.
A source familiar with the talks reported that the U.S. team informed the Chinese side that any potential meeting this autumn would have been cancelled if they failed to reach a TikTok deal in Madrid.
The talks coincided with Washington's demand that its allies impose tariffs on Chinese imports due to Beijing's purchases of Russian oil, which China called an attempt at coercion. Secretary Bessent confirmed the issue of Russia was briefly discussed.
Separately, Beijing announced a preliminary investigation had found U.S. chip giant Nvidia violated its anti-monopoly law. Secretary Bessent regarded the Nvidia announcement as poor timing, widely perceived as retaliation against Washington's curbs on the Chinese chip sector.
U.S. and Chinese officials reached a framework agreement for TikTok to become U.S.-controlled.
U.S. President Donald Trump and Chinese President Xi Jinping will confirm the deal on Friday.
The agreement is a breakthrough in trade war talks, with a Sept. 17 deadline having spurred negotiations.
Source: REUTERS
