The United States and China said they had reached a "framework" agreement on the ownership of TikTok's American operations, a move that could avert a U.S. ban on the popular social media app. Treasury Secretary Scott Bessent told reporters the tentative deal was struck after two days of trade talks in Madrid and that President Donald Trump and Chinese President Xi Jinping would speak on Friday to "complete" the arrangement.
Bessent said the framework calls for "a switch to a U.S.-controlled ownership" but provided no further details on the mechanics of the transfer or the timeline for completion. China had not commented on the announced framework as of Monday.
The announcement comes days before a looming deadline for ByteDance, TikTok's China-based parent company, to sell the app's U.S. operations or face a ban affecting an estimated 135 million American users. The deadline has been repeatedly extended by the administration; the most recent target date was Sept. 17. U.S. Trade Representative Jamieson Greer said the deadline could be extended further to allow time to finalize the framework.
The sale requirement stems from a 2024 law, upheld by the Supreme Court, that ordered ByteDance to divest its U.S. operations amid national security concerns. The law led to TikTok going dark in the United States on the evening of Jan. 18 and disappearing from U.S. app stores, only to return hours later after the president extended the deadline for a sale. The administration has issued subsequent extensions as negotiations have continued.
Trump posted on his social media platform that talks in Madrid had "gone VERY WELL!" and said "a deal was also reached on a 'certain' company that young people in our Country very much wanted to save." The president's recent statements and the White House's launch of its own TikTok account in August marked a notable shift from his first term, when he moved to ban the app.
Officials have provided little public detail on the proposed ownership structure, the identity of any potential U.S. buyers or the specific safeguards intended to address the security concerns cited by lawmakers. ByteDance has previously said it would comply with applicable laws but has pushed back on measures it says could unjustly strip the company of its rights.
Trade and national security officials have been working to reconcile U.S. demands for control over data and operations with Chinese legal and regulatory constraints on foreign ownership. The framework reached in Madrid is the latest step in months of negotiations involving U.S. economic and national security agencies and Chinese counterparts.
If completed, the deal would end a high-profile regulatory fight that has drawn intense attention from lawmakers, technology companies and millions of users. It would also set a precedent for how the two countries handle the ownership of technology platforms with cross-border data flows and growing national security implications.
Negotiators and administration officials say the Friday call between the two presidents is intended to finalize terms, but until a definitive agreement is published, the precise obligations, enforcement mechanisms and timelines remain unclear. Lawmakers on both sides of the aisle have emphasized the need for rigorous safeguards should a sale proceed, while civil liberties groups have warned about potential impacts on speech and privacy.
Further details are expected after the president and Xi speak. For now, the framework announcement leaves the fate of TikTok's U.S. operations contingent on diplomatic confirmation, legal implementation and the identification of a buyer willing to meet U.S. requirements.