NEWS WRAP: China, U.S. reach framework deal on TikTok

The agreement is expected to resolve U.S. security concerns while ensuring the popular social media platform retains its ‘Chinese characteristics’

By Lee Shih Ta

U.S. and Chinese officials said on Monday they have reached a framework deal on the control of Chinese-owned short video app TikTok to address concerns from both sides during trade talks in Madrid. U.S. President Donald Trump later wrote on social media that the agreement would be confirmed in a call with Chinese President Xi Jinping set for Friday.

The broader talks were led by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent, and covered issues including new U.S. tariffs imposed this year, as well as export controls on sensitive technologies, and TikTok, which is owned by Chinese company ByteDance. This marked the fourth round of trade talks since Trump launched a new tariff war in April.

The potential deal involving the popular social media app, which has 170 million U.S. users, represents a rare breakthrough in months of negotiations between the world’s two largest economies.

Speaking about TikTok, Li Chenggang, China’s Vice Minister of Commerce and chief trade negotiator, said China has always opposed politicizing technology and trade issues, and would never seek to reach any agreement at the cost of principles, corporate interests, or international fairness, according to Chinese media Caixin.

“China will firmly safeguard national interests and the legitimate rights of Chinese companies, and will conduct technology export approvals in accordance with laws and regulations,” Li said. “At the same time, the Chinese government fully respects corporate intentions and supports enterprises in engaging in equal business negotiations on the basis of market principles.”

Bessent said after the talks that the two sides had reached a framework agreement on the TikTok issue, but did not disclose details. He said the agreement was a matter between two private parties, but that the commercial terms had already been agreed upon. He emphasized that the deal would resolve U.S. security concerns while at the same time preserving TikTok’s Chinese characteristics.

According to CNBC, Bessent noted that under this framework, TikTok’s ownership could come under U.S. control.

TikTok’s future has been a focal point in the U.S.-China talks. Trump has signed three executive orders this year delaying a TikTok divestiture deadline mandated by U.S. legislation, with the latest extension setting Sept. 17 as the new cutoff. Under the U.S. legislation, TikTok faces a ban in the U.S. if ByteDance fails to divest.

Trump has previously stressed that potential American buyers are ready, including billionaire real estate tycoon Frank McCourt, AI startup Perplexity AI, and a consortium led by Employer.com founder Jesse Tinsley. However, their proposals differ in terms of acquisition scope and equity structure.

Any TikTok sale would require Chinese government approval. In 2020, China’s Ministry of Commerce and Ministry of Science and Technology updated the country’s export control catalog to include “personalized information push technology based on data analysis” and “AI interactive interface technology,” meaning TikTok’s core algorithm cannot be transferred abroad without government approval.

By Lee Shih Ta

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