Framework agreement reached
Donald Trump has indicated that the US and China have struck a breakthrough agreement on the future of TikTok’s American operations.
Posting on Truth Social, the president said trade talks in Madrid had “gone very well” and hinted at a resolution for “a certain company that young people…very much wanted to save.”
Treasury secretary Scott Bessent later confirmed that negotiators had secured a “framework” deal to be approved by Trump and President Xi Jinping during a scheduled call on Friday.
Divestment deadline looms
The US has repeatedly postponed its deadline requiring TikTok’s Chinese owner ByteDance to divest its US arm or face a nationwide ban. The current cut-off falls on Wednesday, but officials suggested one final short extension may be necessary to finalise the agreement.
Bessent said the arrangement envisages TikTok shifting to US-controlled ownership, though final details await presidential sign-off. US trade representative Jamieson Greer stressed that Monday’s progress marked the end of rolling extensions.
Political significance
The development signals a potential easing of one of the most fraught disputes in US-China relations. Trump described the bilateral relationship as “a very strong one,” underscoring his intent to stabilise ties with Beijing while delivering on domestic concerns over data security.
If confirmed, the deal would end months of uncertainty for TikTok’s 170 million US users and its American workforce, while also marking a rare point of cooperation between Washington and Beijing in an otherwise tense geopolitical climate.
