The United State government, under the administration of Donald Trump, and the Chinese government, under the administration of Xi Jinping, have reached a ‘framework’ agreement that would allow TikTok to continue operating in the U.S. under a new ownership structure.
This information was announced by Scott Kenneth Homer Bessent, the current U.S. Secretary of the Treasury. Bessent mentioned during the U.S.–China talks in Madrid that the deal is essentially worked out.
He said the negotiations are happening between two private companies, and while the finer details are still being handled, the main business terms are already settled.
The Bessent's announcement broke less than an hour after President Donald Trump hinted on Truth Social that an agreement over TikTok had been reached.
Trump’s Truth Social's post comes just a few days before the September 17 deadline, which would have triggered a fourth U.S. ban on TikTok if no deal was reached.
However, it's worth mentioning that the discussion in Madrid today is not the first time Trump has hinted at progress. Back in June, he mentioned that he had already lined up some buyers for the app.
The framework deal and U.S.-controlled ownership
Under this new framework agreement, TikTok would be pivoted to U.S.-controlled ownership. That is, control of key parts—including data, algorithm, etc.—would be moved into U.S. hands.
There is a law in the United State called "Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA)."
The law forces apps owned by companies from rival countries, like TikTok, to either sell to a U.S.-approved buyer or be banned. It’s meant to protect national security and prevent foreign governments from accessing Americans’ data or influencing them through these platforms.
The deadline tied to shutting down TikTok in the U.S. was September 17, unless the deal is finalized. But because of the framework deal agreed upon in Madrid, that deadline may be extended slightly to allow time to finalize the transaction.
Although, many details haven’t been made public. But according to Treasury Secretary Scott Bessent, "it’s between two private parties," and "the commercial terms have been agreed upon."
To further finalized more on the framework, President Donald Trump and Chinese President Xi Jinping are scheduled to speak to finish ironing out remaining issues.
However, what is not yet clear are that who will own which parts of TikTok, how much U.S. ownership will be surrender, what happens to ByteDance’s stake, and what parts (algorithm, data storage, moderation, etc.) must be under U.S. control.
Meanwhile, note that the agreement still needs approval from regulatory bodies in China and the U.S. As of now, Chinese officials have not fully confirmed the public statements from U.S. officials.
Official Chinese sources are quiet or cautious. What do you think about this TikTok deal? Let's know your opinions in the comment section and do well to share this article to your loved ones.
