US and China Reach Tentative Agreement on TikTok Ownership as Deadline Approaches

Tue Sep 30 2025 06:23:39 GMT+0300 (Eastern European Summer Time)

In a significant move, the US Treasury Secretary announced a 'framework' agreement regarding TikTok's ownership, suggesting that a deal could soon be finalized amid ongoing trade talks with China.

The US Treasury Secretary revealed that a 'framework' deal concerning the ownership of TikTok's US operations has been reached during trade discussions in Madrid. This agreement, which requires approval from both the US and Chinese leaders, is crucial as the Chinese parent company, ByteDance, faces a looming deadline to sell its US division to avoid a ban. Despite concerns over data privacy and national security raised by US officials, ByteDance maintains that it operates independently. The future of TikTok hangs in the balance as a September 17 deadline approaches for a finalized sale.

The US treasury secretary has stated that Washington has reached a 'framework' deal with China regarding the ownership of TikTok's American operations.

Scott Bessent mentioned that this framework was established during trade talks in Madrid, paving the way for US ownership of the popular video-sharing platform. He indicated that US President Donald Trump and Chinese President Xi Jinping are expected to finalize the deal soon. China has yet to respond to these developments.

President Trump shared on Truth Social that discussions in Madrid had been productive, leading to a deal that is important to the younger generation in the US.

A critical deadline is fast approaching, as the Chinese parent company of TikTok, ByteDance, must find a buyer for its US operations or risk facing a ban in the country.

Earlier this year, the US Supreme Court upheld legislation enacted in April 2024 that would lead to a ban unless ByteDance sold its US division.

The US Justice Department has described TikTok's access to American user data as posing a significant national-security threat.

ByteDance insists that its US operations are fully autonomous and that no data has been shared with the Chinese government. The company argues that enforcing a ban would violate free speech rights for its 170 million US users.

TikTok had temporarily gone offline in January following the law’s enactment but was granted a 75-day reprieve after Trump's intervention.

The deadline for a sale has been extended three times, with the latest extension set to expire on September 17.

Multiple parties have been rumored to be potential buyers, including Tesla's Elon Musk, YouTube star MrBeast, and billionaire entrepreneur Frank McCourt.

Bessent disclosed the 'framework' agreement amid ongoing US-China trade negotiations aimed at resolving a fractured economic relationship between the two superpowers.