Treasury Secretary Scott Bessent said Monday that U.S. and Chinese negotiators have reached a “framework” for a deal to transfer TikTok to U.S. ownership, a development that emerged as Congress and the White House prepared for the possibility of a government ban on the app later this week.
Bessent told reporters the agreement addresses U.S. national security concerns while providing what he described as a fair outcome for China, and said remaining details would be ironed out between President Donald Trump and Chinese Premier Xi Jinping in a call expected Friday.
"We were very focused on TikTok and making sure that it was a deal that is fair for the Chinese and completely respects U.S. national security concerns, and that’s the deal we reached," Bessent said. He added that the U.S. sought to ensure Chinese investors have a fair environment in the United States but emphasized that "U.S. national security comes first."
The announcement came as White House officials and congressional leaders weighed legislation and executive options that could shut down or force the sale of the app, which is owned by Beijing-based ByteDance and is used by tens of millions of Americans. President Trump posted on his platform that talks with China had "gone VERY WELL" and said the trade meeting in Europe would conclude shortly.
Delegations from both countries have been meeting this week in Madrid for the fourth round of trade talks in four months. U.S. and Chinese teams have discussed tariffs, technology restrictions and the divestment of TikTok as part of the broader negotiations. Bessent said senior U.S. negotiators pushed back against what he described as "very aggressive" demands from the Chinese side on some trade issues.
Reuters reported that U.S. officials were prepared to move forward with a ban on TikTok as early as Wednesday if Beijing did not moderate its position on tariffs and technology-related demands. The White House did not immediately respond to requests for comment about that report.
Lawmakers and national security officials have long accused ByteDance of posing intelligence and propaganda risks because of its Chinese ownership and legal obligations under Chinese law. In June, the administration extended a deadline by 90 days to Sept. 17 for TikTok to transfer to U.S. control. The app briefly went dark for U.S. users in January amid legal and regulatory pressure.
Beijing pushed back sharply over U.S. trade demands and related actions. A Chinese Commerce Ministry spokesperson at a Monday press briefing called U.S. demands that allies impose tariffs on Chinese imports over purchases of Russian oil "a typical act of unilateral bullying and economic coercion," and said such measures would violate understandings reached between the Chinese and U.S. leaders and could "severely impact global trade." The ministry also accused U.S. policy of threatening the stability of industrial and supply chains.
Trade tensions have been compounded by legal and regulatory developments on both sides. In July, negotiators in Stockholm extended a trade truce and agreed to resume rare-earth exports from China to the United States. Separately, the U.S. Supreme Court has agreed to hear a case challenging the legality of many of the tariffs imposed during the Trump administration, after lower courts found that the president exceeded his authority in levying those taxes. China has also accused U.S. chipmaker Nvidia of violating its anti-monopoly law.
A range of responses from U.S. lawmakers followed news of the framework. Some welcomed progress toward a resolution that could preserve the app for American users while addressing security concerns. Others cautioned that any agreement would require careful scrutiny of ownership, data flows and governance to ensure long-term protection of U.S. national security interests.
Demonstrations and public debate have accompanied the diplomatic exchanges. Advocates for the app's users have staged protests on Capitol Hill; critics have continued to press for legislative or executive action.
U.S. and Chinese negotiators have signaled that the framework is a step rather than a final accord, and officials from both capitals must still align on legal, financial and security arrangements. The expected call between Trump and Xi offers the next opportunity for leaders to confirm details and determine whether the framework will lead to a completed transaction or further political and legal steps.
Both governments face domestic constraints. In Washington, bipartisan concerns about foreign influence and data security have driven legislation and regulatory scrutiny. In Beijing, leaders have emphasized the need to protect Chinese companies and their investors in foreign markets. The pace and terms of any divestment will be central to resolving those competing priorities and to defusing a flashpoint in increasingly tense U.S.-China relations.