Key points
- US and China reached a framework agreement for US-controlled ownership of TikTok.
- The deal aims to address US national security concerns regarding TikTok’s user data.
- A final agreement is expected to be confirmed in a Friday call between Presidents Trump and Xi.
- The deal preserves aspects of TikTok’s “Chinese characteristics,” according to US Treasury Secretary Bessent.
A significant breakthrough has been achieved in the ongoing US-China trade dispute, with both nations announcing a framework agreement regarding the ownership of the popular short-video app, TikTok. The deal, announced Monday, proposes a shift to US-controlled ownership, addressing long-standing concerns within the US government about potential access to user data by the Chinese government.
US Treasury Secretary Scott Bessent confirmed the agreement following meetings in Madrid with Chinese negotiators, stating that a looming September 17th deadline spurred the progress. This deadline, which threatened to disrupt TikTok’s operations in the US, may be extended by 90 days to allow for finalization of the deal.
Bessent emphasized that while the agreement safeguards US national security interests, it also incorporates elements valued by Chinese negotiators, describing these as “Chinese characteristics” representing soft power. He clarified that the US focus remained solely on national security, rather than the cultural aspects of the app.
This framework agreement follows a previous, unsuccessful attempt at a similar deal earlier this year. Any final agreement will likely require approval from the US Congress, given the 2024 law mandating divestiture due to national security concerns.
President Trump, who has publicly praised TikTok’s influence and even used the platform extensively, announced the impending confirmation of the agreement with Chinese President Xi Jinping in a Friday call via his Truth Social platform. He expressed optimism about the outcome and the continued strength of the US-China relationship.
While the specifics of the deal remain undisclosed, Chinese officials have indicated that it may involve the licensing of intellectual property rights, including algorithms.
The agreement on TikTok represents a rare moment of cooperation amidst broader trade tensions between the two countries. China continues to express concerns about what it views as unilateral US actions, including restrictions on semiconductor shipments and other advanced technologies. These concerns were explicitly voiced by China’s top trade negotiator, Li Chenggang, who described some US actions as “unilateral bullying.”
The Madrid meetings marked the fourth round of talks in four months aimed at resolving these broader trade issues, including the TikTok divestiture deadline. The possibility of a future summit between Presidents Trump and Xi Jinping was also discussed.
