The US treasury secretary has stated that Washington has reached a framework deal with China concerning the ownership of TikTok's American operations.
Scott Bessent mentioned that the framework was established during trade talks in Madrid, paving the way for US ownership. He noted that US President Donald Trump and Chinese President Xi Jinping are expected to finalize the deal.
Trump indicated on Truth Social that the negotiations have been fruitful, while China confirmed the existence of a framework agreement, insisting that no deal would infringe on the interests of Chinese companies.
A deadline is approaching for ByteDance, TikTok’s parent company, to locate a buyer for its American operations or risk a potential shutdown and ban in the US.
Bessent announced this framework on the second day of discussions aimed at resolving ongoing trade tensions between the two nations.
He remarked that the impending threat to shut down the social media platform in the US had led Chinese representatives to abandon requests for reduced tariffs in exchange for selling TikTok’s American segment.
The commercial terms of the agreement are designed to safeguard US national security interests, he added.
US trade representative Jamieson Greer, part of the US delegation in Madrid, indicated that the deal is subject to the leaders' approval, emphasizing that his team is not inclined towards repeated extensions of the ban.
China's chief trade negotiator, Li Chenggang, clarified that his country would not compromise its principles or the interests of Chinese companies in reaching any sort of agreement. The Chinese leadership will review any proposals before they are finalized.
In January, the US Supreme Court upheld a law mandating the sale of TikTok's US operations. The Justice Department has identified TikTok’s access to American user data as a significant national security threat, prompting regulatory actions.
ByteDance maintains that its US operations function independently and that no data has been shared with the Chinese government, arguing that a ban would violate free speech rights for its 170 million US users.
TikTok temporarily ceased operations in January after the law was enacted, only to be granted a 75-day reprieve by Trump.
Numerous potential buyers, including Oracle co-founder Larry Ellison and YouTube creator MrBeast, have emerged as possible successors for the platform.
Concerns remain, especially regarding whether user data will be fully secured and encrypted domestically and if independent audits will ensure no backdoor access arises from Beijing.
According to experts, while the deal superficially resolves ownership, it risks leaving significant vulnerabilities unaddressed.
With the stakes high, the complexities surrounding data collection and its potential implications for China’s military and intelligence capabilities remain a pivotal issue in the negotiations.
