Framework Deal Reached for TikTok Ownership between the US and China

Tue Oct 21 2025 03:21:51 GMT+0300 (Eastern European Summer Time)

The US has reportedly reached an initial framework agreement with China concerning the ownership of TikTok's operations in America, aimed to facilitate a sale before a looming deadline.

In recent trade talks in Madrid, US Treasury Secretary Scott Bessent announced that a 'framework' deal has been established with China regarding the ownership of TikTok's US operations. The agreement is expected to be completed by US President Donald Trump and Chinese President Xi Jinping. As a deadline nears for the Chinese parent company, ByteDance, to divest its operations, the US government continues to emphasize concerns over potential national security risks.

The US treasury secretary has confirmed that a 'framework' deal has been reached with China on the imminent ownership of TikTok's American operations. Scott Bessent noted that this agreement, established during trade discussions in Madrid, lays the groundwork for complete US ownership of the popular video-sharing app. He emphasized that the deal would be finalized by US President Donald Trump and Chinese President Xi Jinping on Friday, although there has yet to be a comment from China.

President Trump remarked on Truth Social that the discussions in Madrid yielded positive results, declaring a deal was made regarding a company that is highly popular among young Americans.

With an impending deadline for the Chinese company ByteDance to sell its US division or face a ban in the US, the situation is becoming increasingly urgent. In January, the US Supreme Court upheld legislation mandating the sale, citing national security concerns over TikTok's access to American user data.

Despite ByteDance's assertions of operational independence and claims about no data sharing with the Chinese government, the US Justice Department remains steadfast in its concerns. TikTok briefly shut down in January following the law's enactment, but President Trump's intervention issued a postponement, extending the deadline multiple times. The latest extension is set to expire on September 17.

Potential buyers of TikTok have included notable figures such as Elon Musk and popular YouTube creator MrBeast. Bessent's announcement coincides with ongoing trade discussions aimed at resolving disputes between the two nations.