In brief
In a significant development, the US Treasury Secretary announced that a 'framework' agreement has been reached with China regarding TikTok's ownership in the U.S. The agreement comes as a deadline approaches for the Chinese parent company, ByteDance, to sell its American operations or face a ban. President Trump expressed optimism about the negotiations, which are part of broader trade discussions aimed at resolving ongoing tensions between the two nations. This story reflects the increasingly complex relationship between the U.S. and China amidst concerns about data security.
The US Treasury Secretary has stated that Washington has reached a framework deal with China concerning the ownership of TikTok's U.S. operations.
Scott Bessent said the framework was established during trade talks in Madrid, clearing the way for U.S. ownership. He added that President Donald Trump and Chinese President Xi Jinping are expected to finalize the deal on Friday, although China has yet to respond.
Trump mentioned on Truth Social that discussions in Madrid had gone very well, and a deal was reached on a certain company that young people in our country very much wanted to save.
A deadline is approaching for ByteDance, the Chinese owner of TikTok, to find a buyer for its U.S. operations or face a ban in the United States.
In January, the US Supreme Court upheld a law requiring the video-sharing app's parent company to sell its U.S. division.
The US Justice Department indicated that TikTok's access to American user data poses a significant national-security threat.
ByteDance contends that its U.S. operations are independent and asserts that no data has been shared with the Chinese government, claiming that a ban would infringe upon free speech rights of its 170 million U.S. users.
Tensions flared earlier in January when TikTok was made unavailable for a day after the law took effect until Trump intervened, granting a 75-day postponement.
The deadline for the sale has been extended three times, and the most recent delay concludes on September 17.
Potential buyers for the platform have included notable figures such as Elon Musk, YouTube creator MrBeast, and billionaire investor Frank McCourt.
Bessent announced the framework deal during the second day of trade talks between the U.S. and China, aimed at addressing the ongoing trade conflict between the two economic giants.
