U.S. and China Reach Framework Deal on TikTok Amid Rising Trade Tensions

The United States and China have agreed on a framework that could transfer TikTok’s U.S. operations to American investors, Treasury Secretary Scott Bessent announced Wednesday during bilateral talks in Madrid.

Madrid — The announcement comes as Washington and Beijing prepare for a potential meeting between Presidents Donald Trump and Xi Jinping to hammer out details of the agreement. TikTok faces a deadline to divest its U.S. assets or risk being banned from the American market.

President Trump signaled support for the deal in a post on Truth Social, calling TikTok a company that “young Americans want to save,” in a direct reference to the app’s massive popularity.

U.S. Trade Representative officials indicated that the deadline could be extended slightly to finalize negotiations but stressed that no open-ended extensions would be granted.

The deal talks unfold against a backdrop of escalating tariff disputes and technology restrictions between the world’s two largest economies. TikTok, owned by China’s ByteDance, has not yet commented on the framework agreement.