TikTok users in the U.S. may get a reprieve from the threat of a shutdown after the Trump administration announced it has reached a framework deal with China for the ownership of the popular social video platform.
U.S. Treasury Secretary Scott Bessent said in a press conference after the latest round of trade talks between the world’s top two economies concluded in Madrid that U.S. President Donald Trump and Chinese President Xi Jinping would speak Friday to possibly finalize the deal. He said the objective of the deal would be to switch to American ownership.
He did not disclose the terms of the deal, saying that it is between two private parties, but added that “the commercial terms have been agreed upon.”
Little is known about the actual deal in the works, including what companies are involved and whether the United States would have a stake in TikTok. Li Chenggang, China’s international trade representative, said the two sides have reached “basic framework consensus” to properly solve TikTok-related issues in a cooperative way, reduce investment barriers and promote related economic and trade cooperation, according to China’s official news agency Xinhua.
Oracle Corp. has been floated as a likely buyer for the platform. Representatives for the company did not immediately respond to a message for comment on Monday.
In Madrid, U.S. Trade Representative Jamieson Greer said the team was “very focused on TikTok and making sure that it was a deal that is fair for the Chinese,” but also “completely respects U.S. national security concerns.”
Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, told reporters in Madrid there was consensus on authorization of “the use of intellectual property rights such as (TikTok’s) algorithm” — a main sticking point in the deal.
The sides also agreed on entrusting a partner with handling U.S. user data and content security, he said.
Though he has no clear legal basis to do so, Trump has continued to extend the deadline for TikTok to avoid a ban in the U.S. This gives his administration more time to broker a deal to bring the social media platform under American ownership. The next deadline is on Sept. 17, and Trump has already signaled he would extend it if needed.
It is not clear how many times Trump can keep extending the ban as the government continues to try to negotiate a deal for TikTok, which is owned by China’s ByteDance. While there is no clear legal basis for the extensions, so far, there have been no legal challenges against the administration. Trump has amassed more than 15 million followers on TikTok since he joined last year, and he has credited the trendsetting platform with helping him gain traction among young voters. He said in January that he has a “warm spot for TikTok.”
For now, TikTok continues to function for its 170 million users in the U.S. Tech giants Apple, Google and Oracle were persuaded to continue to offer and support the app, on the promise that Trump’s Justice Department would not use the law to seek potentially steep fines against them.
Americans are even more closely divided on what to do about TikTok than they were two years ago.
A recent Pew Research Center survey found that about one-third of Americans said they supported a TikTok ban, down from 50% in March 2023. Roughly one-third said they would oppose a ban, and a similar percentage said they weren’t sure.
Among those who said they supported banning the social media platform, about 8 in 10 cited concerns over users’ data security being at risk as a major factor in their decision, according to the report.
During his first term as president, Trump led the effort to ban TikTok, saying it posed a threat to U.S. national security. But his tune changed when he returned to the White House a second time, signing an executive order on his first day in office to keep the app running.
During Joe Biden’s Democratic presidency, Congress and the White House used national security grounds to approve a U.S. ban on TikTok unless its Chinese parent company sold its controlling stake.
U.S. officials were concerned about ByteDance’s roots and ownership, pointing to laws in China that require Chinese companies to hand over data requested by the government. Another concern became the proprietary algorithm that populates what users see on the app.
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This story corrects Chinese President Xi Jinping’s title.
