TikTok ownership shift nears approval as US and China reach framework deal

The agreement, covering the short-video platform used by around 170 million Americans, marks a rare step forward in protracted talks between the world’s two largest economies. The negotiations have been aimed at cooling trade tensions that have unsettled global markets.

After discussions with Chinese delegates in Madrid, US Treasury Secretary Scott Bessent said an impending 17 September deadline, which could have disrupted TikTok’s operations in the United States, had spurred progress. He added that the deadline might be pushed back by three months to finalise details, while declining to outline specific terms.

Bessent stressed that the eventual deal would retain cultural elements prized by Beijing, but that Washington’s overriding concern was national security. “They see the app’s Chinese characteristics as soft power. For us, it is about safeguarding national security,” he told reporters.

President Trump, asked whether Beijing might keep a stake in the platform, said no decision had yet been taken and that he would seek clarity from Xi.

It is the second time this year the two governments have signalled they were close to a resolution on TikTok; an earlier attempt in March collapsed.

Any settlement would still need approval from the Republican-controlled Congress, which in 2024 passed legislation requiring ByteDance to divest over fears that Chinese authorities could access US user data or manipulate the app to influence public opinion.

Trump has resisted shutting the service, citing its political significance and popularity, noting his own 15 million followers and the White House’s recent launch of an official account.

On his Truth Social platform, Trump hinted at the deal, declaring that a company valued by young Americans had been “saved” and promising further discussion with Xi.

Questions remain over whether ByteDance will transfer TikTok’s underlying technology to a US buyer. Chinese regulators have suggested that any agreement could involve licensing of intellectual property, including algorithms.

Beyond TikTok, Washington has tightened restrictions on semiconductor exports and other sensitive technologies, while banning Chinese goods deemed to pose espionage risks.

Beijing’s lead trade negotiator, Li Chenggang, criticised the approach as “unilateral bullying,” warning that the US could not demand concessions while simultaneously targeting Chinese firms.

The Madrid talks, held in Spain’s Palacio de Santa Cruz, were the fourth round of negotiations since May, led by Bessent and Chinese Vice Premier He Lifeng.

They form part of broader attempts to resolve tariff disputes and ensure the supply of rare earths to the United States.

Trump has expressed interest in a personal meeting with Xi, though Bessent said it would be up to the two leaders to decide during their call. Sources indicated that without progress on TikTok, any autumn summit would have been ruled out.

The talks also touched briefly on Washington’s push for allies to impose tariffs in response to China’s purchases of Russian oil, which Beijing denounced as coercive.

Meanwhile, China announced an antitrust probe into US chipmaker Nvidia, widely interpreted as retaliation against American curbs on its tech sector.

Reuters