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The United States and China have reached a preliminary framework agreement aimed at transferring TikTok's American operations into US hands, easing tensions over national security concerns.
US Treasury Secretary Scott Bessent announced the breakthrough after two days of high-level trade negotiations in Madrid. He said the agreement was a "significant step" toward resolving disputes around the popular video-sharing app, which has more than 135 million active users in the US.
"We now have a clear framework for how this transition can happen," Bessent told reporters. "While the commercial details remain private, both sides have agreed on principles that will safeguard US national security."
Former President Donald Trump praised the progress on Truth Social, saying the talks had "gone very well" and that a final deal could be signed later this week following discussions with Chinese President Xi Jinping.
The Chinese delegation confirmed the framework but stressed that any final arrangement must protect the interests of Chinese companies. "Negotiations must be based on mutual respect," said Li Chenggang, China's top trade negotiator.
The agreement comes as a deadline looms for ByteDance, TikTok's Beijing-based parent company, to sell its US arm or face a nationwide ban. TikTok briefly went offline in January after a law requiring its divestiture took effect. Trump later issued a temporary extension, which has since been renewed three times. The latest delay expires on 17 September.
Washington's concerns center on fears that the Chinese government could access Americans' data or influence public opinion through TikTok's algorithm. The US Department of Justice has described the potential risk as "immense," citing TikTok's vast collection of sensitive user information.
ByteDance has repeatedly denied sharing data with Beijing and argued that the company's American operations run independently. Critics, however, remain skeptical.
Tech policy expert Sarah Kreps said the framework leaves key questions unanswered, including whether TikTok's data will be fully stored on US soil and how independent audits will be conducted to prevent backdoor access.
Negotiators say final terms will be confirmed when Trump and Xi meet later this week. If approved, the deal would mark the most significant development yet in the years-long battle over TikTok's future in the US.
