After years of negotiation and uncertainty surrounding TikTok’s future in the United States, a framework agreement has been reached between the Trump administration and China to keep the popular video-sharing app operational in the U.S. This development, announced on Monday by U.S. Treasury Secretary Scott Bessent, closes a chapter that began during President Trump’s first term and had been threatening TikTok’s presence in American digital life.
Treasury Secretary Bessent revealed that the two countries have agreed on a framework plan, with President Trump scheduled to speak with Chinese President Xi Jinping on Friday to finalize the details. This high-level conversation is set as a precursor to an anticipated summit both leaders have sought for several months. The agreement emerged from trade talks held in Madrid, where the TikTok issue was discussed alongside broader U.S.-China trade concerns.
Bessent emphasized the importance of balancing national security priorities with the commercial realities of the deal. Though specifics remain closely held, he explained that the deal respects U.S. security interests while not undermining elements important to the Chinese stakeholders, referring to them as TikTok’s “Chinese characteristics.” According to Bessent, the Chinese side was initially demanding tariff concessions and had a long list of compensation requests, but the looming threat of a TikTok shutdown in the U.S. shifted the negotiations in Washington’s favor.
While the administration has not officially named the buyer for TikTok’s U.S. operations, speculation points to a consortium involving Oracle’s executive chairman, Larry Ellison, a Trump ally. Trump has expressed public support for Ellison acquiring the app’s American assets. The deal will presumably lead to a U.S.-controlled entity managing TikTok’s 170 million American users, preserving access to the platform for millions of consumers and creators who rely on it.
The original mandate behind this move was a bipartisan congressional law signed last year that required ByteDance, TikTok’s Chinese parent company, to divest its U.S. operations or face a ban over national security concerns. ByteDance’s stake was viewed skeptically by U.S. officials worried about data privacy and potential Chinese government influence, triggering multiple extensions of the app’s legal limbo and deadlines for compliance.
Administrators involved in the discussions made clear the deal’s commercial terms are agreed upon between the private parties involved but declined to share details publicly. The focus, they stressed, was to reach a fair agreement that satisfies both U.S. national security and China’s commercial interests without sacrificing one for the other. Additionally, U.S. officials want to ensure Chinese investors receive equitable treatment in the American market, even as national security concerns remain paramount.
Negotiators expressed that the talks were intense and complicated by broader U.S.-China trade tensions. At the Madrid meeting, TikTok became a focal point illustrating the challenge of advancing cooperation while protecting strategic interests. Bessent noted that the Chinese delegation recalibrated its stance when confronted with the U.S. willingness to let TikTok disappear if no deal was reached, removing some of its prior demands and making this framework possible.
Sunday’s announcement signals the likely extension of the timeline beyond the current September 17 deadline for finalizing TikTok’s U.S. ownership transfer. While the deal awaits confirmation from the two presidents, the hope is to bring clarity and stability to the situation, avoiding a disruption for the platform’s huge American user base.
President Trump himself highlighted the progress on social media, describing the negotiations as moving “very positively” and emphasizing the strong relationship maintained between the countries despite the challenges. A successful resolution could pave the way for a more comprehensive trade understanding sought by both nations.
For TikTok users and advertisers, this means continued access to one of the world’s most influential social media platforms. For the tech industry and policymakers, it presents a precedent for managing Chinese-owned apps in the U.S. market while addressing legitimate national security concerns.
This newly crafted agreement is a notable step in a complicated saga that reflects the intersection of technology, geopolitics and commerce between two global powers. Both governments appear intent on avoiding further disruption, but the final outcome hinges on the planned weekend discussion between Trump and Xi, which could cement the framework reached in Madrid.
