U.S, China reach deal on TikTokchina ahead of shutdown deadline
The United States and China have reached a “framework” agreement on the future of TikTok, Treasury Secretary Scott Bessent announced on Monday during U.S.-China discussions in Madrid.
The deal comes ahead of a 17 September deadline set by the Trump administration requiring TikTok’s parent company, ByteDance, to divest its U.S. business or face a potential nationwide shutdown.
Bessent confirmed that “the commercial terms have been agreed upon,” adding that while the negotiations are technically between private parties, the framework paves the way for TikTok’s U.S. operations to shift to American-controlled ownership.
Both President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Friday to finalise the arrangement.
Trump hinted at progress in a Truth Social post, saying a deal had been struck involving a company that “young people in our country very much wanted to save.”
China’s lead trade negotiator, Li Chenggang, also confirmed the framework deal, cautioning Washington against “suppressing Chinese companies,” according to Reuters.
The talks form part of broader U.S.-China trade negotiations, which have been strained in recent months by tariffs and new restrictions on Chinese firms.
Meanwhile, ByteDance faces growing pressure. Congress passed legislation last year banning app store operators such as Apple and Google from distributing TikTok in the U.S. because of its designation as a “foreign adversary-controlled application.”
Trump previously signed executive orders extending the shutdown deadline, but administration officials insist no further extensions will be granted beyond the current one.
Commerce Secretary Howard Lutnick warned in July that TikTok would be forced to shut down in the U.S. if China did not agree to give Washington more control over the app.
Potential U.S. buyers have ranged from major tech figures, including Oracle chairman Larry Ellison and Tesla CEO Elon Musk, to newer players such as AI startup Perplexity and businessman Frank McCourt’s Project Liberty initiative.
TikTok has not commented on the latest developments.
The outcome of Friday’s high-level meeting between Trump and Xi could determine whether TikTok remains accessible to millions of American users or faces a historic shutdown.
