The United States and China have reached a breakthrough agreement on TikTok’s future, paving the way for the video-sharing app to transfer into US-controlled ownership after years of political wrangling.
US trade representative Jamieson Greer confirmed on Monday that negotiators had struck a framework deal with Beijing following high-level talks in Madrid. Treasury secretary Scott Bessent said the commercial terms had been finalised between “two private parties”, but declined to disclose details, adding only that the Chinese delegation had made “aggressive asks” during the negotiations.
China’s top trade envoy, Li Chenggang, later confirmed that consensus had been reached on the basic framework. While calling the talks “hard won”, he cautioned Washington against continuing what he described as the “suppression” of Chinese companies, warning that cooperation could not be one-sided.
The agreement marks a major turning point in a long-running dispute that has threatened to see TikTok banned outright in the US. The app’s parent company, Beijing-based ByteDance, was ordered in 2024 to divest its US arm under legislation signed by then-president Joe Biden. His successor, Donald Trump, has repeatedly extended the deadline but kept up pressure on both sides to strike a deal.
The US has more than 135 million TikTok users, including the White House, which controversially launched its own account in August despite federal devices still being banned from using the app. The security concerns fuelling the row centre on fears that Chinese national security laws could compel ByteDance to hand over American user data or manipulate content. Former FBI director Christopher Wray has previously warned of the risk of mass surveillance or influence operations.
TikTok briefly went dark in January when the original ban deadline expired, with Apple and Google removing the app from their stores. Trump reversed the shutdown within hours of taking office, issuing an executive order to delay enforcement, before granting multiple further extensions.
The ownership saga stretches back to 2020 when Trump first ordered ByteDance to sell TikTok or face a ban. Microsoft, Walmart and Oracle were among the US companies that explored deals, but no agreement was finalised. Oracle has remained TikTok’s US cloud provider since 2022.
Final details of the new deal are expected to be settled when Trump meets China’s president Xi Jinping on Friday. Trump hinted at progress during the talks, posting on Truth Social: “A deal was also reached on a ‘certain’ company that young people in our Country very much want to save. They will be very happy!”
Greer confirmed the framework was now awaiting approval from both leaders, insisting there would be no further delays: “We’re not going to be in the business of having repetitive extensions. We have a deal.”