The United States and China have agreed on a framework to transfer ownership of TikTok to a U.S.-controlled entity. This announcement came from top U.S. officials in Madrid, where high-level talks between the two nations took place. President Donald Trump is expected to discuss this development with Chinese President Xi Jinping on Friday.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer shared the news after their meeting with Chinese officials. However, they did not disclose any specific details about the agreement. Bessent mentioned that more information would be revealed following the upcoming call between Trump and Xi.
Trump expressed optimism about the trade discussions, stating that they had gone well. He hinted that a resolution regarding TikTok’s ownership issues was close, saying that many young Americans would be pleased with the outcome. Earlier in the day, a U.S. official indicated that the U.S. would consider banning TikTok if China did not agree to certain concessions regarding tariffs and technology restrictions.
The negotiations in Madrid, which started on Sunday, were part of ongoing discussions about trade and economic policies. They were particularly urgent due to a deadline for TikTok to divest from its Chinese owner, Bytedance, or face a potential shutdown in the U.S. by September 17.
During the talks, U.S. officials noted that China was asking for significant trade and technology concessions in exchange for agreeing to TikTok’s divestment. Bessent emphasized that the U.S. would not compromise national security for the sake of a social media app.
The meetings took place at the Palacio de Santa Cruz, a historic site in Madrid, and were the fourth round of discussions in recent months aimed at addressing strained trade relations. This backdrop included U.S. demands for allies to impose tariffs on Chinese imports linked to Russian oil purchases, a move that Beijing criticized as coercive.
Adding to the tension, China announced a preliminary investigation into Nvidia, a major U.S. chip company, for alleged anti-monopoly violations. Bessent described this timing as unfortunate, suggesting it could be seen as a retaliatory action against U.S. restrictions on the Chinese tech sector.
As the situation develops, all eyes will be on the upcoming conversation between Trump and Xi, which could shape the future of TikTok and U.S.-China relations.
