U.S. Treasury Secretary Scott Bessent announced that the U.S. and China have reached a framework deal on the short-video app TikTok. The agreement was part of broader talks on tariffs and economic policy that concluded in Madrid on Monday.
The deal would allow TikTok to continue operating in the United States, where it faced a shutdown as early as September 17 unless it transitioned to U.S. ownership.
“The framework is for a switch to a U.S.-controlled ownership,” Bessent told reporters in Madrid, without providing further details.
U.S. Trade Representative Jamieson Greer said there could be a short extension of the September 17 deadline for TikTok to finalize the framework deal. Bessent noted, “It would not have been extended without a framework.”
Bessent also confirmed that U.S. President Donald Trump and his Chinese counterpart Xi Jinping would speak on Friday. Earlier on Monday, the U.S. had threatened to ban the popular social media app unless China dropped its demands for concessions on reduced tariffs and technological restrictions as part of a divestiture deal.
Bessent added that another round of talks on trade and economic policy is likely in the coming days. The two sides also discussed ways to cooperate on issues like money laundering and curbing the illicit fentanyl trade.
