.png){kind=logo}
Washington and Beijing are close to finalising a deal over TikTok’s US operations, officials confirmed during trade talks in Madrid. US Treasury Secretary Scott Bessent said commercial terms had been agreed, with the framework allowing American ownership of the social media platform.
President Donald Trump hinted at the development, stating on Truth Social that a deal had been reached on a company “young people in our country very much wanted to save.” He added that he would speak with President Xi Jinping on Friday to complete the arrangement.
The pending agreement comes ahead of a deadline set for 17 September, when TikTok faces a nationwide ban unless its parent company ByteDance divests majority ownership of its US business. The White House has extended this deadline three times since 2024, when Congress passed a law requiring TikTok to separate its American assets from its Chinese parent.
The Trump administration has advocated for the US to have a majority stake in TikTok's ownership, citing the threat to national security posed by Chinese access to user data. Some large companies, such as venture capital group Andreessen Horowitz, private equity company Blackstone, and technology player Oracle, have expressed interest in obtaining a stake.
Reports from CBS News suggested Oracle has emerged as a frontrunner in the talks. Oracle shares rose 5% in premarket trading following the news, reflecting investor expectations of a deal. Analysts view TikTok’s US operations as a high-value asset with significant growth potential.
China’s lead trade negotiator, Li Chenggang, confirmed that a framework deal exists but emphasised that Beijing would not allow agreements that undermine Chinese companies. He stated that any final decision would need approval from the Chinese leadership.
Experts remain cautious over unresolved issues surrounding TikTok’s data practices. Sarah Kreps, director of the Tech Policy Institute at Cornell University, told the BBC that without clear safeguards, “core vulnerabilities” around US user data would persist. Concerns focus on whether TikTok’s recommendation algorithm and user data storage will be fully controlled within the United States.
Jim Secreto, a former national security official, noted that Beijing holds influence over the transfer of TikTok’s algorithm. He warned that the data collected today could support China’s artificial intelligence development and intelligence capabilities if not strictly regulated.
The TikTok talks are also part of wider US-China trade talks that have been aggravated due to tariffs and tech conflicts. The success of the negotiations might influence the future of the platform not only in the US but also in the overall process of the economic relations between the US and China.
Also Read: TikTok Ban Still in Place, Government Clarifies Amid Access Report
