MADRID/WASHINGTON--U.S. and Chinese officials said on Monday they have reached a framework agreement to switch short-video app TikTok to U.S.-controlled ownership that will be confirmed in a Friday call between U.S. President Donald Trump and Chinese President Xi Jinping.
The potential deal on the popular social media app, which counts 170 million U.S. users, was a rare breakthrough in months-long talks between the world's No. 1 and No. 2 economies that have sought to defuse a wide-ranging trade war that has unnerved global markets.After a meeting with Chinese negotiators in Madrid, U.S. Treasury Secretary Scott Bessent said a September 17 deadline that could have disrupted the popular social media app in the U.S. encouraged Chinese negotiators to reach a potential deal.
He said that deadline could be extended by 90 days to allow the deal to be finalized, but declined to discuss specifics of the deal. Bessent said when commercial terms of the deal are revealed, it will preserve cultural aspects of TikTok that Chinese negotiators care about.
"They're interested in Chinese characteristics of the app, which they think are soft power. We don't care about Chinese characteristics. We care about national security," Bessent told reporters at the conclusion of two days of talks.
Trump, when asked if China would hold a stake in the company, told reporters, "We haven't decided that but it looks to me, and I'm speaking to President Xi on Friday, for confirmation of that."
It is the second time this year that the two sides have said they were nearing a TikTok deal. The earlier announcement in March ultimately did not pan out.
Any agreement could require approval by the Republican-controlled Congress, which passed a law in 2024 requiring divestiture due to fears that TikTok's U.S. user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or conduct influence operations through the app. But the Trump administration has repeatedly declined to force a shutdown, which could anger the app's millions of users and disrupt political communications. Trump has credited the app with helping him win re-election last year, and his personal account has 15 million followers. The White House launched an official TikTok account last month.
"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!!!" Trump wrote on his Truth Social platform.
Bessent did not say 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, said the deal could licence intellectual property rights, including algorithms.
Aside from TikTok, the U.S. has cited national security concerns to block shipments of semiconductors and other advanced technology to China, and ban Chinese products that Washington has concluded could be used to spy on Americans or gather intelligence.China's top trade negotiator, Li Chenggang, told reporters that those concerns amounted to "unilateral bullying."
"The United States cannot on the one hand ask China to take care of its concerns, and on the other hand continue to suppress Chinese companies," Li said.
Li said the two sides had reached a "basic framework consensus" on resolving TikTok-related issues - a slight variation from the language used by the U.S. side.
