The United States and China have reached a preliminary framework agreement on the future of TikTok’s operations in the U.S., Treasury Secretary Scott Bessent confirmed Monday, following high-level negotiations in the Spanish capital. The deal, which is expected to be finalised later this week, will be reviewed and completed by U.S. President Donald Trump and Chinese President Xi Jinping during upcoming trade discussions.
“Talks have gone very well,” President Trump posted on Truth Social, signaling optimism ahead of Friday’s expected announcement.
Chinese officials also acknowledged the existence of a framework but emphasized that any final arrangement would “protect the legitimate interests of Chinese enterprises.”
The announcement comes just days before a looming Wednesday deadline that requires TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations or face a federal ban. While the Biden administration previously issued extensions, the Trump White House has suggested this may be the final opportunity to resolve the issue through diplomacy.
Among the U.S. companies reportedly involved in negotiations is Oracle, which could play a key role in restructuring TikTok’s American presence. Under the proposed framework, TikTok could continue to operate in the U.S. through a new partnership model aimed at alleviating national security concerns.
Ownership of the video-sharing platform has emerged as a high-stakes bargaining chip in wider U.S.-China trade negotiations, which have historically included disputes over tariffs, technology transfers, and investment flows. At one point, tariffs between the two nations spiked to as high as 145% on certain goods.
Despite progress, concerns persist over how American user data and TikTok’s recommendation algorithm will be handled under any new ownership structure. National security officials and tech policy analysts warn that unresolved questions about data storage, oversight, and software control could continue to pose risks even if ByteDance relinquishes formal ownership.
U.S. officials noted that the framework includes “stringent provisions” to ensure national security safeguards, but emphasized that final approval would rest with the heads of state.
A formal announcement is expected following Friday’s meeting between Trump and Xi, which will coincide with broader discussions aimed at stabilizing bilateral economic relations.
