U.S. Treasury Secretary Scott Bessent announced after weekend trade talks in Spain that Washington and Beijing have struck a framework agreement on the ownership of the wildly popular social video platform TikTok.
At a press conference in Madrid following the latest round of trade negotiations between the world’s two largest economies, Bessent said President Donald Trump and Chinese Premier Xi Jinping are set to speak Friday to potentially seal the agreement. He noted that the goal is to transfer TikTok’s ownership from China’s ByteDance to U.S. control.
“We are not going to talk about the commercial terms of the deal,” Bessent said. “It’s between two private parties. But the commercial terms have been agreed upon.”
Li Chenggang, China’s international trade representative, told reporters that both sides have reached a “basic framework consensus” to address TikTok-related concerns collaboratively, ease investment barriers, and strengthen broader economic and trade cooperation.
The Madrid meeting marked the fourth round of trade negotiations between U.S. and Chinese officials since President Trump initiated a tariff war on Chinese goods in April. Bessent said a fifth round is expected “in the coming weeks,” as both governments prepare for a potential Trump–Xi summit later this year or early next to cement a comprehensive trade deal.
However, nothing is finalized, and analysts caution that potential trade hurdles could push back the visit.
Why a TikTok deal is needed
In Madrid, U.S. Trade Representative Jamieson Greer said the team was “very focused on TikTok and making sure that it was a deal that is fair for the Chinese” but also “completely respects U.S. national security concerns.”
Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, told reporters in Madrid that negotiators have reached consensus on authorizing the use of key intellectual property rights—including TikTok’s algorithm—a central sticking point in the agreement.
He added that both sides also agreed to appoint a trusted partner to manage U.S. user data and ensure content security.
During President Joe Biden’s administration, Congress and the White House invoked national security concerns to back a U.S. ban on TikTok unless its Chinese parent company agreed to sell its controlling stake.
U.S. officials raised concerns over ByteDance’s Chinese origins and ownership, citing laws that compel Chinese companies to provide data to the government upon request. Another major issue centered on the proprietary algorithm that determines the content users see on the app.
President Trump, a Republican, has repeatedly postponed the deadline to shut down TikTok. The latest extension is set to expire Wednesday, just two days before he and Xi are scheduled to review the final details of the framework agreement.
Although Trump has not directly commented on the approaching deadline, he has asserted that he has the authority to postpone the ban indefinitely.
Wendy Cutler, senior vice president at the Asia Society Policy Institute, noted that it appears “both sides have found a way forward to transfer ownership to a U.S. company.”
“If accurate, this would represent an important step forward in resolving a lingering bilateral dispute,” she said.
Fentanyl and other issues are still unresolved
Other persistent issues—including export controls, Chinese investments in the U.S., and restrictions on chemicals used to produce fentanyl—were also discussed. Bessent highlighted that money laundering linked to drug trafficking “was an area of extreme agreement.”
Chinese Vice Premier He Lifeng, who led the Chinese delegation, described the talks as “candid, in-depth, and constructive,” according to China’s official news agency, Xinhua.
But Li, China’s international trade representative, said Beijing opposes the “politicization” and “weaponization” of technology, trade and economic issues, adding that China would “never seek any agreement at the expense of principle, the interests of the companies, and international fairness and justice.”
He accused the U.S. of overextending the concept of national security and imposing sanctions on additional Chinese companies. Describing the actions as “a typical, unilateral, bullying practice,” Li stated that China is demanding the removal of these restrictive measures.
“The U.S. side should not on one hand ask China to accommodate its concerns, whilst at the same time continue to suppress Chinese companies,” Li said.
During the weekend talks, Trump asserted that the war in Ukraine would end if all NATO countries halted purchases of Russian oil and if China faced tariffs of 50% to 100% for participating. On Monday, China’s Commerce Ministry denounced the demand as “a classic example of unilateral bullying and economic coercion.”
A leaders’ summit may be in sight
On Monday, China’s foreign ministry declined to confirm whether Beijing has extended a state visit invitation to Trump.
Analysts have indicated that the Asia-Pacific Economic Cooperation summit in South Korea at the end of October could present a potential opportunity.
The plan for another round of trade talks is "encouraging but it appears to be cutting things close,” Cutler said, noting that additional groundwork at lower levels is necessary before a Trump–Xi meeting can occur, and that other opportunities for their engagement may arise next year.
For now, “there is little time to hammer out a meaningful trade agreement,” she said. “What we are more likely to see is a series of ad-hoc deliverables, possibly a Chinese commitment to buy more U.S. soybeans and other products, a U.S. agreement to hold back on announcing certain further U.S. high-tech export controls, and another 90-day rollover of the tariff pause.”
