The United States and China have reached a preliminary agreement on the future of social media giant TikTok, U.S. Treasury Secretary Scott Bessent announced on Monday. Speaking from Madrid where bilateral trade discussions are underway, Bessent said, “It’s between two private parties, but the commercial terms have been agreed upon.”
The framework deal, which could result in the platform shifting to American control, is expected to be further discussed in a high-level meeting between President Donald Trump and Chinese President Xi Jinping this Friday. President Trump confirmed on his Truth Social platform that an accord had been reached regarding a “certain” company sought by young Americans.
China’s chief trade negotiator, Li Chenggang, corroborated the existence of the framework agreement, emphasising that the U.S. should stop what he termed as the continued suppression of Chinese companies, according to Reuters.
The negotiations come amid heightened tensions between Washington and Beijing, exacerbated recently by the Trump administration’s imposition of tariffs and other trade barriers.
TikTok’s parent company, ByteDance, is racing against a September 17 deadline to divest its U.S. operations or face a potential ban in the country. It was widely expected on Monday that the deadline could be extended.
