The United States and China have reached a “framework agreement” over TikTok’s U.S. operations, potentially paving the way for American ownership of the popular video-sharing app. The deal was confirmed Monday after two days of trade negotiations in Madrid, U.S. Treasury Secretary Scott Bessent said, adding that President Donald Trump and Chinese leader Xi Jinping are expected to finalize details on Friday.
The talks come ahead of a critical September 17 deadline requiring TikTok’s Chinese parent company, ByteDance, to sell its U.S. division or face a nationwide ban. The deadline, originally set for earlier this year, has already been extended three times.
President Trump said on Truth Social that discussions had “gone very well.” China also confirmed a framework deal but stressed that it would not compromise the interests of Chinese firms. U.S. Trade Representative Jamieson Greer emphasized that the framework was subject to the leaders’ approval but warned against “repetitive ban extensions.”
Reports suggest that Oracle, already a longtime TikTok partner, was among the companies positioned to facilitate continued operations in the U.S. if a final deal is approved. Neither Oracle nor TikTok immediately commented.
The issue has become a key flashpoint in U.S.-China trade relations. Washington has long argued that TikTok poses a national security risk because of its potential access to U.S. user data, which officials fear could be exploited by Beijing. Earlier this year, the U.S. Supreme Court upheld legislation requiring TikTok’s sale, forcing the platform offline for a day before Trump granted a temporary reprieve.
ByteDance, however, has insisted that TikTok’s U.S. operations are independent and compliant with American regulations, adding that a ban would undermine free speech rights for its 170 million U.S. users.
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While the framework signals progress, experts say major questions remain unresolved. These include whether TikTok’s recommendation algorithm—the core of its global success—will be transferred to a U.S. buyer, and how American user data will be safeguarded.
“Ownership may change on paper, but without clarity on data storage and algorithm control, national security concerns could persist,” warned Sarah Kreps, director of the Tech Policy Institute at Cornell University.
For now, the framework deal marks a tentative breakthrough, but the fate of TikTok—and its role in U.S.-China relations—still hangs on the details.
