A framework agreement has been reached between China and the United States to move over ByteDance-owned TikTok into American ownership, US Treasury Secretary Scott Bessent announced after trade talks in Madrid, news agency Reuters reported.
Revealing that US President Donald Trump and Chinese Premier Xi Jinping are slated to speak Friday to possibly finalise details, Bessent reportedly said, “We are not going to talk about the commercial terms of the deal.” “It’s between two private parties. But the commercial terms have been agreed upon,” Bessent said, according to The Associated Press.
Chinese Side Confirms Consensus
Meanwhile, China’s trade representative Li Chenggang confirmed that the two sides have reached a “basic framework consensus” to address TikTok‑related issues in a cooperative way, reduce investment barriers, and boost economic and trade cooperation, per AP. Chenggang further said that there were “candid, in‑depth” discussions regarding TikTok and topics of concern for China.
Talks, Deadlines and Next Steps
The latest round of discussion in Madrid is the fourth such talks of negotiations in four months between the US and Chinese officials seeking to resolve deep trade disputes rooted in tariffs and export controls.
A key deadline is September 17, when ByteDance – TikTok’s Chinese owner – must divest its American operations or face a shutdown under the US law. The framework deal aims to avert that outcome, Politico reported.
Bessent, the report said, further noted that law enforcement has already been delayed multiple times by Trump, who has granted extensions under pressure to avoid shutting down TikTok, used by millions of Americans.
What Lies Ahead
Analysts suggest that full resolution will depend on forthcoming talks, particularly between Trump and Xi. There’s also risk: unresolved issues around export controls, data privacy, and how much control American entities will have over the algorithm that powers TikTok are likely to be sticking points.
