A framework agreement has been reached between the United States and China that will shift control of TikTok to a US‐based ownership, while aiming to protect both national security and the app's“Chinese characteristics,” Treasury Secretary Scott Bessent said after trade talks in Madrid. The deal, though lacking full disclosure of commercial details, is to be finalised when President Donald Trump and President Xi Jinping speak on Friday.

The framework responds to a deadline that could force TikTok offline in the US unless ByteDance, its China‐based parent, divested control. Under this agreement, TikTok may continue operating as its operations are transitioned. US Trade Representative Jamieson Greer indicated the September 17 cut-off could be extended by 90 days to allow completion.

Chinese negotiators had pushed for tariff relief and easing of export controls in exchange for agreeing to the ownership transfer. Bessent said those demands were dropped. He emphasised that safeguards addressing national security will be built in, though precise clauses on algorithm control, intellectual property rights and data security remain under negotiation.

Li Chenggang, China's trade representative, remarked that both sides had reached a“basic framework consensus” over how to resolve TikTok's ownership, reduce investment barriers and promote cooperation in trade and economic issues. He criticised what Beijing calls the politicisation of trade and expressed concern that Chinese firms should not be“suppressed” while China accommodates US concerns.

US national security officials have long argued that ByteDance's ownership threatens data privacy and could allow Beijing undue access to information about US users. Part of the agreement seeks to address those fears while allowing TikTok to preserve certain features that reflect its Chinese heritage-a point the Chinese side considers as soft power. Bessent has said the deal is being negotiated between private parties but that commercial terms have already been agreed in principle.

Technical issues such as who will control the algorithm, where user data will be stored, and how content moderation is to be governed remain unresolved. The US Congress, which enacted a law in 2024 mandating divestment or shutdown of foreign-adversary controlled apps unless sold to a US‐approved owner, may need to approve the final ownership structure.

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