In a pivotal move, the United States and China have agreed on a framework to transfer TikTok’s U.S. operations to American-controlled ownership, preventing the shutdown of the popular social video platform ahead of its looming deadline. The deal emerged from high-level trade and economic policy discussions held in Madrid, where diplomats of both countries spent days negotiating terms critical to national security and digital commerce.
Treasury Secretary Scott Bessent announced that although many details remain under wraps, the framework establishes the requirement for TikTok to be owned by U.S. entities. U.S. Trade Representative Jamieson Greer confirmed that the September 17 deadline may be pushed back slightly so the transition can be completed. President Donald Trump and Chinese President Xi Jinping plan to confer on Friday, with the intention of finalizing the details and ensuring both sides satisfy outstanding requirements.
Prior to the agreement, U.S. officials had threatened to enforce a ban unless China dropped certain demands tied to technology and tariffs as they relate to TikTok’s ownership. The Madrid negotiations also touched on cooperation to curb money laundering and combat the illicit fentanyl trade, indicating the deep intertwining of security, regulation, and tech in current U.S.-China relations.
This framework deal signals a major development in how global digital platforms are governed, especially those with foreign ownership and potentially sensitive data flows. For investors and market watchers, the resolution offers relief—at least temporarily—from the uncertainty that has weighed on shares of tech firms and raised compliance risks across the industry. The next steps will be critical: getting final sign-off from leadership in both countries, and ensuring the legal, regulatory, and operational transition preserves security while supporting TikTok’s U.S. user base.
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