lipflip – The United States and China reached a framework agreement on TikTok’s US operations, marking a significant step in broader trade talks between the two largest global economies. US Treasury Secretary Scott Bessent announced the deal in Madrid on Monday after two days of high-level negotiations.
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President Donald Trump stated on Truth Social that the discussions had “gone very well.” Chinese officials echoed this sentiment but warned that any final agreement must respect China’s corporate interests. The deal is expected to be finalized when Trump and Chinese President Xi Jinping meet on Friday.
The long-standing concern centers on TikTok’s Chinese ownership and potential risks to US national security. A law passed in April 2024, upheld by the US Supreme Court in January, mandates that TikTok’s parent company, ByteDance, divest its US operations. Failure to comply could lead to a ban in the United States. Although the law originally set a strict deadline, Washington has granted ByteDance three deadline extensions. The current deadline expires on September 17.
US officials emphasized that this latest extension could be the final one. Jamieson Greer, US Trade Representative, said his team was not inclined to keep delaying enforcement. This signals increasing pressure on ByteDance to finalize a sale. Meanwhile, Oracle has reportedly emerged as a key player in a proposed buyer consortium, according to CBS News.
National Security and Ownership Disputes Remain Central to the TikTok Debate
The US Justice Department continues to express serious concerns over ByteDance’s access to American user data. It calls TikTok “a national-security threat of immense depth and scale.” These warnings have been central to the government’s push for a forced sale.
ByteDance strongly denies the claims, insisting its US operations function independently and share no data with the Chinese government. TikTok’s executives argue the ban would violate the free speech rights of its 170 million American users.
China’s lead trade negotiator, Li Chenggang, reinforced that any agreement must align with China’s principles. He said Beijing will closely examine the terms before granting final approval. Despite tensions, the framework agreement indicates a willingness from both sides to compromise for broader economic gains.
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The trade war between the US and China had previously resulted in tariffs on goods reaching up to 145%. Resolving the TikTok issue is seen as a strategic move to ease this economic strain. Washington’s emphasis on protecting national security while avoiding another extension adds urgency to the negotiations.
If the deal is finalized, it may set a precedent for how the US handles foreign-owned tech firms operating domestically. It could also reshape future trade deals, with data security and digital ownership playing larger roles. As both governments prepare for Friday’s summit, all eyes remain on the TikTok agreement and its broader implications for US-China relations.