A framework agreement has been reached between the United States and China on the ownership of TikTok, U.S. Treasury Secretary Scott Bessent confirmed after weekend trade talks in Madrid. The arrangement aims to shift ownership of the social video platform from its parent company, ByteDance, to U.S. hands.
Bessent said President Donald Trump and Chinese President Xi Jinping are expected to speak Friday to potentially finalize the deal. He declined to share commercial details, noting that the terms had been settled between private parties.
Chinese trade representative Li Chenggang described the outcome as a “basic framework consensus” to address TikTok-related issues cooperatively while also reducing investment barriers and promoting broader trade cooperation.
National Security Concerns
U.S. officials have long raised concerns over ByteDance’s ties to Chinese law, which could require it to share user data with Beijing. Another sticking point has been TikTok’s proprietary algorithm, the technology that drives what users see in the app.
In Madrid, Chinese representatives confirmed there was progress on authorizing U.S. oversight of TikTok’s intellectual property rights and ensuring American partners handle U.S. user data and content security.
During Joe Biden’s presidency, Congress passed legislation that threatened to ban TikTok unless it was sold to a U.S. company. Trump, while extending the deadline several times, has insisted any deal must safeguard American national security. The current deadline expires Wednesday, two days before Trump and Xi are scheduled to revisit the framework deal.
Broader Trade Talks Continue
While TikTok dominated the Madrid discussions, other unresolved matters remain. Officials addressed restrictions on chemicals used to produce fentanyl, Chinese investment barriers, and U.S. export controls. Bessent said money laundering tied to drug trafficking was an area of “extreme agreement.”
Chinese officials, however, criticized what they called U.S. “bullying practices,” pointing to sanctions on Chinese firms and accusing Washington of overusing national security claims.
Despite tensions, officials said progress has been made. Analysts suggest a Trump-Xi summit could happen later this year or in early 2026 to solidify a broader trade pact, though some caution that the timetable is tight.
What The Author Thinks
The TikTok framework deal is about far more than one app — it’s a political symbol. For Trump, securing U.S. ownership shows strength on national security and trade. For Xi, agreeing to terms without appearing to bow to U.S. pressure maintains face at home. Both leaders want a “win,” but the truth is that this deal is a test of who can bend without breaking. The outcome may define how U.S.-China tech battles unfold in the years ahead.
Featured image credit: Solen Feyissa via Unsplash
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