US and China Reach Framework Agreement on TikTok Ownership
The United States and China have agreed on a preliminary framework to transition TikTok's American operations to U.S. ownership, with final details pending approval from both nations' leaders.
The United States and China have reached a preliminary framework agreement concerning the ownership of TikTok's American operations. U.S. Treasury Secretary Scott Bessent announced that the framework was established during recent trade discussions in Madrid, aiming to transition TikTok's U.S. operations to American ownership. Bessent indicated that U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to finalize the agreement on Friday.
President Trump commented on Truth Social that the negotiations had "gone very well." China's top trade negotiator, Li Chenggang, confirmed the framework agreement but emphasized that any deal would not compromise the interests of Chinese companies.
The discussions occur against the backdrop of an impending deadline for ByteDance, TikTok's Chinese parent company, to divest its American operations or face a ban in the U.S. Bessent noted that the threat of a shutdown influenced Chinese negotiators to abandon demands for reduced tariffs as part of the sale. He also stated that the agreed commercial terms are designed to protect U.S. national security interests.
U.S. Trade Representative Jamieson Greer mentioned that the deal is "subject to the leaders' approval" and expressed a reluctance to grant further extensions on the ban. Li Chenggang reiterated that China would not agree to any deal that undermines its principles or the interests of its companies, and that the Chinese leadership would review any agreement before finalization.
In January, the U.S. Supreme Court upheld a law passed in April 2024, mandating ByteDance to sell TikTok's U.S. division or face a ban. The U.S. Justice Department has raised concerns about TikTok's access to American user data, citing national security risks. ByteDance has consistently maintained that its U.S. operations are independent and that no data has been shared with the Chinese government.
The deadline for the sale has been extended multiple times, with the current extension set to expire on September 17. Potential buyers previously mentioned include Tesla owner Elon Musk, YouTube creator MrBeast, and billionaire investor Frank McCourt.