US and China reach framework deal on TikTok
The TikTok Inc building is seen in Culver City, California, US. Picture: Damian Dovarganes/AP photo
A framework deal has been reached between China and the US for the ownership of popular social video platform TikTok, US treasury secretary Scott Bessent said after weekend trade talks in Spain.
Mr Bessent said in a press conference after the latest round of trade talks between the world’s two largest economies concluded in Madrid that US President Donald Trump and Chinese Premier Xi Jinping would speak Friday to possibly finalise the deal.
He said the objective was to switch to US ownership from China’s ByteDance.
“We are not going to talk about the commercial terms of the deal,” Mr Bessent said.
“It’s between two private parties. But the commercial terms have been agreed upon.”
Li Chenggang, China’s international trade representative, told reporters the sides have reached “basic framework consensus” to resolve TikTok-related issues in a cooperative way, reduce investment barriers and promote related economic and trade cooperation.
The meeting in Madrid is the fourth round of trade talks between US and Chinese officials since Mr Trump launched a tariff war on Chinese goods in April.
A fifth round of negotiations is likely to happen “in the coming weeks”, Mr Bessent said, with both governments planning for a possible summit between Mr Trump and Mr Xi later this year or early next year to solidify a trade agreement.
However, nothing has been confirmed, and analysts say possible trade bumps could delay the visit.
– Why a TikTok deal is needed
In Madrid, US trade representative Jamieson Greer said the team was “very focused on TikTok and making sure that it was a deal that is fair for the Chinese” but also “completely respects US national security concerns”.
Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, told reporters in Madrid there was consensus on authorisation of “the use of intellectual property rights such as (TikTok’s) algorithm” — a main sticking point in the deal.
The sides also agreed on entrusting a partner with handling US user data and content security, he said.
During Joe Biden’s Democratic presidency, Congress and the White House used national security grounds to approve a US ban on TikTok unless its Chinese parent company sold its controlling stake.
US officials were concerned about ByteDance’s roots and ownership, pointing to laws in China that require Chinese companies to hand over data requested by the government.
Another concern became the proprietary algorithm that populates what users see on the app.
Mr Trump, a Republican, has repeatedly extended the deadline for shutting down TikTok.
The current extension expires on Wednesday, two days before Mr Trump and Mr Xi are scheduled to discuss the final details of the framework deal.
Although Mr Trump has not addressed the forthcoming deadline directly, he has claimed that he can delay the ban indefinitely.
