The United States and China have agreed on a framework to keep TikTok operating in America, Treasury Secretary Scott Bessent said Monday. He described a shift to U.S.-controlled ownership ahead of a Sept. 17 divest-or-ban deadline.
U.S. officials said a short extension is possible to finalize terms. Speaking in Madrid after two days of talks, Bessent declined to say who will control TikTok’s algorithm.
“We’re not going to talk about the commercial terms of the deal,” Bessent said. “That’s between two private parties. But the commercial terms have been agreed upon.”
President Donald Trump said negotiations with Chinese Vice Premier He Lifeng went very well and that he will speak with President Xi Jinping on Friday. He also posted that a deal had been reached for “a company that young people in our Country very much wanted to save,” widely interpreted as TikTok.
Beijing has not confirmed the framework. China’s commerce ministry urged the United States to resolve disputes through “mutual respect and equal consultations,” according to Fortune.
Why was TikTok at risk?
The video app, owned by ByteDance, faced a U.S. ban unless it shifted to non-Chinese control. Trump extended a 90-day deadline in July; it expires this week. While he once pushed for a sale or ban, he has since argued the platform should remain available, crediting it with helping him reach younger voters.
“A Republican never wins youth, but I won youth. I will tell you, TikTok helped me,” Trump said on Fox News.
One U.S. investor, Jeffrey Yass, spent millions in 2024 lobbying to keep TikTok and later donated $16 million to Trump’s super PAC — $1 million just before the inauguration and $15 million in early March.
How does this affect US–China relations?
The framework comes amid discussions on tariffs, money laundering cooperation and curbing fentanyl. Tariffs surged into triple digits earlier this year before both sides temporarily cut duties to 30% on U.S. imports from China and 10% on China’s imports from the U.S. That truce runs through Nov. 10.
Commerce Secretary Howard Lutnick said the administration wants TikTok to be owned and algorithm-controlled by Americans: “If the president can get that, he’s going to keep TikTok. If you can’t, it’s going to go dark.”
Another round of talks is likely, and a brief extension past Sept. 17 could give both sides time to lock in terms. Trump’s call with Xi is set for Friday.
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