Madrid (Spain): Following high-level trade talks in Spain, the United States and China have reached a preliminary agreement concerning the ownership of TikTok, the globally popular short-video platform. The deal, described as a “framework consensus”, aims to transition TikTok to US-controlled ownership, according to US Treasury Secretary Scott Bessent.

Speaking at a press conference in Madrid, Bessent confirmed that President Donald Trump and Chinese Premier Xi Jinping are expected to speak on Friday to potentially finalise the agreement. “We are not going to talk about the commercial terms of the deal,” he said. “It’s between two private parties. But the commercial terms have been agreed upon.”

The announcement follows the fourth round of trade negotiations between the two nations, with a fifth round expected “in the coming weeks”, Bessent added. The broader goal is to ease trade tensions and lay the groundwork for a potential summit between Trump and Xi later this year or early next.

Li Chenggang, China’s international trade representative, echoed the sentiment, stating that both sides had reached a “basic framework consensus” to resolve TikTok-related concerns cooperatively, reduce investment barriers and strengthen economic ties. He described the discussions as “candid, in-depth”.

The urgency orginates from a looming deadline: TikTok faces a potential ban in the US unless its Chinese parent company, ByteDance, divests its controlling stake. The current extension expires Wednesday, just two days before the Trump–Xi call. Although Trump has not directly addressed the deadline, he has suggested he can delay the ban indefinitely.
Meteoric rise of TikTok

Originally launched as Douyin in China in 2016, ByteDance later introduced TikTok globally and merged it with Musical.ly, a lip-syncing app popular among Western teens. The platform quickly gained traction, especially during the COVID-19 lockdowns, and became a cultural phenomenon.

However, its success has also drawn scrutiny. US lawmakers have raised concerns over data privacy and the influence of Chinese law on ByteDance, particularly regarding government access to user data and the app’s proprietary algorithm.

During Joe Biden’s presidency, Congress approved a ban on TikTok unless ByteDance relinquished control. Trump, now back in office, has extended the deadline multiple times, despite legal limits on such reprieves.

The Madrid talks also touched on broader trade issues, including tariffs, technology restrictions and cooperation on illicit trade and money laundering.
Chinese Vice Premier He Lifeng, who led the delegation, was seen smiling as he exited the venue, though Chinese officials did not immediately comment.
AFP