TikTok Deal Framework Reached Between U.S. and China, Trump and Xi Set to Finalize Friday

The U.S. and China have reached a “framework” agreement over TikTok, Treasury Secretary Scott Bessent announced Monday during U.S.-China talks in Madrid.

The deal comes just days before a looming Sept. 17 deadline that could force TikTok’s Chinese parent company ByteDance to divest its U.S. business or face a nationwide shutdown.

“It’s between two private parties, but the commercial terms have been agreed upon,” Bessent said, signaling that the framework could ultimately shift TikTok into U.S.-controlled ownership.

President Donald Trump and Chinese President Xi Jinping are expected to meet on Friday to finalize the terms. Trump echoed the announcement on Truth Social, noting that a deal was reached “on a ‘certain’ company that young people in our Country very much wanted to save.”

China’s lead trade negotiator, Li Chenggang, confirmed the framework was in place but warned Washington against continuing to suppress Chinese firms, according to Reuters.

ByteDance has been under intense pressure as the Trump administration set a Sept. 17 deadline for divestment or shutdown. U.S. Trade Representative Jamieson Greer suggested the deadline may need to be slightly extended to complete the agreement but emphasized there would be no ongoing extensions.

The standoff comes amid escalating trade tensions between Washington and Beijing, fueled by tariffs and fresh restrictions on Chinese technology.

The Battle Over TikTok’s Future

Congress last year passed legislation barring app store operators like Apple and Google from distributing TikTok due to its classification as a “foreign adversary-controlled application.” Trump delayed enforcement several times through executive orders, granting ByteDance extra time to strike a deal.

Commerce Secretary Howard Lutnick warned in July that TikTok would be shut down for Americans if China failed to give the U.S. greater autonomy over the app.

Speculation about TikTok’s future ownership has swirled for months. Trump previously hinted at interest from “very wealthy people,” suggesting Oracle’s Larry Ellison and Tesla’s Elon Musk as possible buyers. AI startup Perplexity and Frank McCourt’s Project Liberty have also submitted bids, according to earlier CNBC reports.

Despite Trump’s repeated warnings about TikTok being a national security threat, the White House itself launched an official TikTok account in August, underscoring the app’s popularity among young Americans.

The TikTok saga is about far more than one app—it has become a proxy battle over technology, national security, and global economic influence.

While the framework deal suggests a resolution may be near, it also highlights how deeply politics now shapes the digital platforms we use every day.

Whether the agreement ultimately protects U.S. interests or simply shifts control into new hands remains to be seen, but one thing is clear: TikTok’s fate could set a powerful precedent for the future of cross-border tech regulation.