U.S. and China Reach Framework Agreement on TikTok Ownership

MADRID -- A significant framework agreement has been established between the United States and China regarding the ownership of the widely-used social media platform TikTok, as confirmed by U.S. Treasury Secretary Scott Bessent following recent trade discussions in Spain.

During a press briefing after the talks, Bessent indicated that U.S. President Donald Trump and Chinese Premier Xi Jinping are expected to communicate on Friday to potentially finalize the details of the agreement, which aims to transition TikTok to U.S. ownership. Bessent refrained from disclosing the commercial specifics of the deal, emphasizing that those details pertain to private entities involved in the transaction.

Li Chenggang, who represents China in international trade matters, stated that both nations have reached a fundamental consensus on addressing issues related to TikTok cooperatively, aiming to lower investment barriers and enhance economic and trade collaboration, as reported by China's state news agency Xinhua.

Li described the discussions as "candid and in-depth," focusing on TikTok and related concerns from the Chinese perspective.

This Madrid meeting marks the fourth round of trade negotiations between U.S. and Chinese officials since the initiation of a tariff conflict by Trump in April. A fifth round of talks is anticipated to occur in the upcoming weeks, with both parties considering a potential summit between Trump and Xi later this year or early next year to solidify a broader trade agreement. However, the specifics of such a summit remain unconfirmed, and analysts have noted that potential trade disputes could impede the visit.

Chinese officials have remained tight-lipped following the Madrid discussions, yet Chinese Vice Premier He Lifeng, who led the Chinese delegation, was observed leaving the venue with a smile.

During the presidency of Joe Biden, Congress and the White House enacted a ban on TikTok, citing national security concerns unless its parent company, ByteDance, divested its controlling interest.

Trump, who is affiliated with the Republican Party, has repeatedly postponed the deadline for TikTok's potential shutdown, despite legal constraints allowing only one 90-day extension under specific conditions. The current extension is set to expire Wednesday, just two days before the anticipated discussions between Trump and Xi regarding the final aspects of the framework agreement. Although Trump has not directly addressed the upcoming deadline, he has suggested he can indefinitely delay the ban.

Founded in 2012 by Chinese entrepreneur Zhang Yiming, ByteDance has developed over 100 applications in recent years. TikTok was launched as an international version of Douyin, a platform introduced in China in 2016. After acquiring Musical.ly, a popular app among teenagers in the U.S. and Europe, ByteDance merged it with TikTok while maintaining Douyin as a separate entity. The app quickly gained popularity in the U.S. and other regions, becoming the first Chinese social media platform to make significant inroads into Western markets.

Unlike traditional social media platforms, TikTok focuses on tailoring content to individual interests, which has contributed to its rapid rise in popularity. The platform became especially prominent during COVID-19 lockdowns, with viral dance challenges becoming a staple of its content. In response, competitors like Instagram and YouTube launched their own short-form video features, Reels and Shorts, respectively. By that time, TikTok had firmly established itself in the social media landscape.

However, TikTok's success has not been without challenges. U.S. officials have expressed concerns regarding the company's Chinese ownership, particularly citing laws in China that mandate companies to comply with government data requests. Additionally, the platform's proprietary algorithm, which determines user content visibility, has also raised alarms.