The United States and China have established a preliminary agreement to transfer ownership of the short-video app TikTok to a U.S.-controlled entity, with a confirmation expected during a call between President Donald Trump and Chinese President Xi Jinping on Friday, as reported by U.S. officials.
TikTok was at risk of being banned in the U.S. by September 17 if its Chinese parent company, ByteDance, didn’t agree to divest its ownership. U.S. Treasury Secretary Scott Bessent indicated that the deadline might be extended to finalize the agreement.
“We won’t discuss the commercial terms of the deal, which involve two private parties, but they have been settled,” Bessent told journalists after concluding two days of discussions in Madrid.
The talks between the U.S. and China at the Palacio de Santa Cruz in Madrid marked the fourth round of negotiations in four months, addressing trade tensions and TikTok’s impending divestment deadline.
President Trump expressed approval of the TikTok agreement on Monday.
“The significant Trade Meeting in Europe between the United States and China has been VERY SUCCESSFUL! It is nearing completion,” Trump posted on his TruthSocial platform.
“We also reached an agreement on a company that many young people in our country were eager to preserve. They will be pleased! I will speak with President Xi on Friday. The relationship remains very strong!!!”
Delegations led by Bessent and Chinese Vice Premier He Lifeng have been meeting in European cities since May to resolve differences that led President Trump to increase tariffs on Chinese goods, prompting retaliatory actions, including China’s imposition of high tariffs on U.S. imports and a halt in rare earth shipments to the U.S.
U.S. Trade Representative Jamieson Greer, who was part of the delegation in Madrid, noted that the TikTok deal exemplifies the goodwill between both parties as they address other issues, including tariffs and economic policy.
“There are significant challenges on trade, economics, and national security between the U.S. and China. Coming together to quickly identify and address these issues down to the details and reach a conclusion, subject to leadership approval, is quite remarkable,” Greer stated.
TRUMP, XI TO DISCUSS MEETING
Bessent mentioned that discussions on other matters would proceed, likely in the upcoming weeks. Trump has shown interest in meeting with Chinese President Xi Jinping, and Bessent noted it would be up to the leaders to decide on a meeting during Friday’s call.
Earlier Monday, a U.S. official privy to the negotiations mentioned that the U.S. would pursue a TikTok ban if China didn’t concede to reduced tariffs and technological constraints as part of the divestiture agreement.
In conversations with reporters, Bessent and Greer stated that China seeks trade and technology concessions in exchange for agreeing to divest from the popular social media platform.
“Our Chinese counterparts have made very assertive demands,” Bessent mentioned, adding: “We are not prepared to compromise national security for a social media app.”
The discussions occurred amid U.S. demands for allies to impose tariffs on Chinese imports due to China’s purchase of Russian oil, which Beijing labeled as coercive on Monday. Bessent noted the Russia issue was briefly touched upon.
Separately, Beijing announced a preliminary investigation into Nvidia, alleging the U.S. chip company violated anti-monopoly laws. Bessent remarked that the timing of the Nvidia announcement was unfortunate.
The investigation is largely seen as retaliation against U.S. restrictions on the Chinese chip industry.
