Washington has announced a framework agreement with China on the future of TikTok’s US operations, paving the way for American ownership as part of ongoing trade negotiations between the world’s two largest economies.
The announcement came after two days of talks in Madrid, where US Treasury Secretary Scott Bessent confirmed that President Donald Trump and Chinese leader Xi Jinping are expected to finalize the agreement later this week. Trump wrote on Truth Social that discussions had “gone very well,” while China said it confirmed a framework but would not compromise its national interests in the process.
The deal comes as a deadline looms for TikTok’s Chinese parent company ByteDance to find a buyer for its US operations or face a nationwide ban over national security concerns. The deadline has already been extended three times and is now set to expire on 17 September.
US media reports indicate that Oracle may play a key role in ensuring TikTok’s continued operations in the country, if the deal is finalized. The platform’s ownership has been a sticking point in trade talks, with observers seeing it as central to Beijing’s efforts to negotiate reduced tariffs and trade barriers with the US.
Bessent stressed that the agreed framework would safeguard US national security, while trade representative Jamieson Greer said the team was not inclined to allow repeated deadline extensions.
China’s lead negotiator, Li Chenggang, maintained that Beijing would not accept terms that undermine its principles. Both governments said the framework remains subject to final approval by their leaders.
The US Supreme Court earlier upheld a law banning TikTok unless ByteDance sold its US arm. Critics argue the app’s access to US user data presents a major security risk, while ByteDance insists its operations are independent and respect user privacy.
Experts, however, remain cautious. Questions linger over whether TikTok’s recommendation algorithm will be transferred to any new owners, how user data will be stored, and whether independent audits will be carried out to prevent hidden access from Beijing.
Analysts say the stakes are high, given ByteDance’s role as a major Chinese artificial intelligence firm. National security officials warn that TikTok’s data could potentially feed into technologies that bolster China’s military and intelligence capabilities.
Despite uncertainties, if the final deal addresses these concerns, experts believe it could mark a breakthrough not only for TikTok’s future in the US but also for broader trade relations between Washington and Beijing.
