The Trump Administration announced on Monday that it has reached a tentative framework deal with China regarding the popular social media app TikTok. This agreement aims to facilitate the transfer of the app from its Chinese owner, ByteDance, to an American entity, just ahead of a potential ban that could affect approximately 135 million users in the United States.
During a press conference following two days of trade discussions in Madrid, Treasury Secretary Scott Bessent confirmed that both parties had agreed on the commercial terms and that the ownership transfer would be under U.S. control. He noted that President Trump and Chinese President Xi Jinping would engage further on Friday to finalize the deal.
Trump initially hinted at the agreement through a post on his social media platform, Truth Social, expressing optimism about the trade talks and signaling a deal beneficial for young American users. The backdrop to this development is a 2024 law signed by former President Joe Biden, which instituted a ban on TikTok unless ByteDance sold the app to a U.S. buyer, citing national security and data privacy concerns. This law was upheld by the Supreme Court in January.
The situation surrounding TikTok has evolved markedly since Trump's first term when he sought to ban the app outright. Recently, he has embraced the platform, even launching a White House TikTok account to indicate support for the app’s future.
Speculation continues regarding potential buyers for TikTok, with names such as Elon Musk and other prominent figures being mentioned. U.S. Trade Representative Jamieson Greer indicated that the deadline for finalizing the framework deal could be extended to accommodate the negotiations.