U.S. and China Reach Framework Agreement on TikTok Ownership

The United States and China have reached a preliminary framework agreement to transition TikTok to U.S.-controlled ownership, addressing longstanding national security concerns. U.S. Treasury Secretary Scott Bessent announced the development following trade discussions in Madrid, stating that the commercial terms have been agreed upon between the involved private parties.

President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Friday to discuss the terms of the agreement. Trump indicated that young Americans would be pleased with the outcome and planned to speak with President Xi later in the week.

The agreement comes ahead of a September 17 deadline, after which TikTok faced a potential ban in the U.S. unless its Chinese parent company, ByteDance, divested its U.S. assets. The framework aims to preserve elements important to China while ensuring U.S. national security concerns are addressed.

The deal follows multiple rounds of negotiations amid broader trade tensions and would require approval by the Republican-led Congress, which previously mandated TikTok's divestiture due to national security risks. Trump has praised the progress, and officials have highlighted the agreement as a sign of goodwill between the countries despite ongoing disputes over trade, tariffs, and technology.

Further details of the agreement are expected to be finalized during the upcoming meeting between Trump and Xi.