U.S., China reach framework on TikTok ownership; Trump, Xi to speak Friday

U.S. officials said Monday that Washington and Beijing have agreed on a framework to place TikTok under U.S.-controlled ownership, with Presidents Donald Trump and Xi Jinping expected to confirm the arrangement in a call on Friday.

U.S. Treasury Secretary Scott Bessent said a Wednesday deadline that could have shut down the app in the United States helped accelerate negotiations and may be extended by up to 90 days to finalize the terms. He declined to detail the deal but said it would retain elements important to Beijing. “They’re interested in Chinese characteristics of the app, which they think are soft power. We don’t care about Chinese characteristics. Bessent told reporters after two days of negotiations in Madrid that the United States’ priority is national security.

The framework marks the second time this year Washington and Beijing have said they were closing in on a TikTok agreement; an earlier announcement in March did not result in a deal. Any final arrangement may require approval by the Republican-controlled Congress, which passed a 2024 law mandating TikTok’s divestiture over concerns that U.S. user data could be accessed by the Chinese government for espionage or influence operations. The Trump administration has not ordered a shutdown to date, citing the potential disruption to millions of users, including for official communications. It remains unclear whether TikTok parent ByteDance would transfer control of the app’s underlying technology to a U.S. buyer.

On Monday, Trump praised the progress in a post on Truth Social, saying the U.S.–China trade talks in Europe were going well and nearing conclusion. He added that negotiators had reached an agreement involving a company popular with young Americans, said he would speak with President Xi on Friday, and described the U.S.–China relationship as strong.

The Madrid talks at Spain’s foreign ministry, the fourth round in four months, were led by Bessent and Chinese Vice Premier He Lifeng and are part of broader efforts to manage strained trade ties alongside TikTok’s divestiture timeline. Delegations have met in multiple European cities since May amid tit-for-tat tariff increases and a halt in Chinese rare-earths shipments to the United States.

U.S. Trade Representative Jamieson Greer said the TikTok framework indicates constructive engagement between Washington and Beijing. He noted that significant disagreements remain on trade, economic, and national security issues, but said negotiators were able to rapidly pinpoint and narrow differences and reach a provisional conclusion pending approval by the two leaders.

Bessent said discussions on other matters would continue in the coming weeks. Trump has expressed interest in an in-person meeting with Xi, and Beijing is seeking to host him in a summit; whether to pursue a meeting will be for the leaders to discuss during Friday’s call.

Earlier Monday, a U.S. official familiar with the negotiations said Washington would move forward with a TikTok ban if China did not withdraw demands for lower U.S. tariffs and looser technology restrictions as part of a divestiture. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer said Chinese negotiators sought concessions on trade and technology in exchange for agreeing to sell.Bessent said the Chinese delegation made aggressive demands and emphasized that the United States would not compromise national security for a social media app.

The talks also occurred as the United States urges allies to impose tariffs on Chinese imports in response to Beijing’s purchases of Russian oil, a move China on Monday called coercive. Bessent said Russia-related issues were discussed briefly.

Separately, Beijing announced Monday that a preliminary investigation had found U.S. chipmaker Nvidia in violation of China’s anti-monopoly law. Bessent called the timing “poor.” The probe is widely seen as a retaliatory response to U.S. curbs on China’s semiconductor sector.