MADRID (BN24) — The United States and China have reached a framework agreement over the future ownership of TikTok, U.S. Treasury Secretary Scott Bessent announced Sunday, though key details remain unresolved.
Bessent made the remarks after weekend trade talks in Madrid between delegations from the world’s two largest economies. He said President Donald Trump and Chinese Premier Xi Jinping are scheduled to speak Friday to discuss final terms and potentially secure a binding deal.
“The objective of this framework is to shift TikTok to U.S. ownership,” Bessent said at a press conference. “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.”
Chinese officials were not present at the briefing and have not confirmed Bessent’s statement.
The framework agreement comes during the fourth round of trade talks since Trump escalated tariffs on Chinese imports in April. Both sides have hinted at a possible summit between Trump and Xi, though analysts warn that ongoing trade disputes could delay any official announcement.
The future of TikTok has been a recurring flashpoint in U.S.-China relations. During President Joe Biden’s administration, Congress and the White House enacted legislation banning the app unless its Chinese parent company, ByteDance, divested its controlling stake.
Trump, who returned to office in 2025, has extended the shutdown deadline several times, despite legal restrictions that allow only a single 90-day reprieve. The current extension expires Sept. 17 — just two days before Trump and Xi are set to discuss the framework agreement. Trump has suggested he can continue delaying the ban indefinitely.
Founded by Beijing-based ByteDance in 2012, TikTok grew from its domestic app Douyin and the acquisition of Musical.ly into a global phenomenon. By 2018, it had become the first Chinese-owned platform to achieve widespread popularity in the United States and Europe, launching the careers of artists such as Lil Nas X.
The app surged further during the COVID-19 pandemic, when viral dance videos made it a cultural staple. Rival platforms like Instagram and YouTube responded by creating their own short-form video features, Reels and Shorts, respectively.
But TikTok’s rapid rise has been shadowed by U.S. security concerns. Lawmakers warn that Chinese law could compel ByteDance to share user data with Beijing. The app’s proprietary recommendation algorithm — central to its success — has also been cited as a potential national security risk.
While Bessent emphasized that “commercial terms have been agreed upon,” the framework lacks clarity on how ownership will be transferred, which U.S. companies may be involved, and whether China will approve the deal.
For now, TikTok’s future hinges on Friday’s expected call between Trump and Xi, a conversation that could determine whether the app continues operating in the United States under new ownership or faces renewed threats of a nationwide ban.
