lipflip – US Treasury Secretary Scott Bessent announced that the United States and China have agreed on a framework deal concerning TikTok. Speaking to reporters in Madrid after two days of talks with Chinese officials, Bessent said the commercial terms have been agreed upon between two private parties. This development signals progress after months of tension surrounding TikTok’s operation in the US.
The potential deal aims to address national security concerns tied to TikTok’s Chinese parent company, ByteDance. The Trump administration had initially banned TikTok in August 2020 unless it divested from ByteDance. However, courts blocked the ban, and TikTok remained available in the US. Earlier this summer, the ban was extended for a third time. Giving TikTok until September 17 to complete a sale or face a ban.
President Trump has expressed support for a US-based acquisition of TikTok. Suggesting that a “very American company” could buy the app. Oracle and Microsoft are among the companies reportedly interested in acquiring TikTok. President Trump also announced that he will discuss the deal with Chinese President Xi Jinping this Friday. Signaling high-level involvement in finalizing the agreement.
The framework deal shows how the US might gain partial control over TikTok, but parties have not yet signed a final agreement. US Trade Representative Jamieson Greer recently said they may need to extend the September 17 deadline again to complete the deal. These ongoing negotiations highlight the complexity of balancing business interests and national security concerns.
Political and Legal Background Surrounding TikTok’s US Ban
The TikTok controversy began with US government fears that the app could pose risks due to its Chinese ownership. ByteDance’s control over TikTok raised concerns about potential access to American users’ data by foreign actors. To counter this, former President Trump issued an executive order in 2020 banning TikTok unless divested from ByteDance.
This order was blocked in courts, delaying any immediate enforcement. In 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), signed into law by President Biden. The law targets apps like TikTok with foreign ownership linked to adversarial countries.
Despite the legislation, the Trump administration repeatedly delayed enforcing the ban, aiming to negotiate a US-based purchase instead. This approach allowed TikTok to remain operational while talks progressed. The current framework deal appears to be the result of these extended negotiations.
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If finalized, this agreement could set a precedent for how foreign-owned tech companies operate under US scrutiny. It also reflects ongoing geopolitical tensions between the US and China, especially in the technology sector. The outcome will likely influence future regulatory actions against other Chinese-owned applications.
ChatGPT said:
In summary, the TikTok framework deal provides a path forward for the app in the US market but leaves important details unresolved. Stakeholders are uncertain whether they can fully sign and implement the agreement before the looming deadline. Governments, industry players, and users worldwide continue to watch this situation closely.