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Madrid Talks Produce Framework Deal on TikTok, Says US Treasury Secretary Bessent

by Thomas Babychan
September 18, 2025
in News
Reading Time: 5 mins read
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Madrid Talks Produce Framework Deal on TikTok, Says US Treasury Secretary Bessent
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Talks between the United States and China over the future of TikTok took a new turn this week after U.S. Treasury Secretary Scott Bessent confirmed that the two sides had reached a framework for an agreement. The announcement came during the fourth round of discussions held in Madrid, where delegations from both countries attempted to ease tensions that have built up over trade, tariffs, and the ownership of the popular short-video app.

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Bessent’s statement gave new hope to both investors and TikTok’s 170 million users in the United States, who have been living under the shadow of a possible ban. The U.S. administration has long pushed for the app’s Chinese parent company, ByteDance, to divest its American operations to a U.S.-based entity. Officials have argued that national security concerns must be addressed, particularly around how user data is managed and whether the app’s powerful algorithm could be used to influence public opinion.

The talks in Madrid were held at the Palacio de Santa Cruz, the seat of Spain’s foreign ministry, and lasted over six hours on Sunday before resuming on Monday. Both Bessent and U.S. Trade Representative Jamieson Greer led the American delegation, while Chinese Vice Premier He Lifeng headed the team from Beijing. The meeting was described as respectful but demanding, with Bessent admitting that while progress had been made on technical issues, achieving consensus on broader trade matters remained difficult.

Bessent told reporters that both sides had entered the talks with determination, but the Chinese delegation had arrived with what he described as an “aggressive ask.” According to him, the U.S. side was not ready to compromise on its security priorities for the sake of keeping a social media app alive. “We are not willing to sacrifice national security for a social media app,” Bessent said firmly.

BREAKING:

Larry Elisson and Andreessen Horowitz, both Jewish, have made a deal and will control 80% of TikTok in the US pic.twitter.com/KMB0JdjMsA

— Megatron (@Megatron_ron) September 17, 2025

The negotiations did not focus solely on TikTok. Tariffs, rare earth exports, and wider trade issues were also on the table. The U.S. has previously imposed high duties on Chinese goods, while China responded with its own set of tariffs and restrictions, including a halt on rare earth shipments. Earlier rounds of talks had already led to temporary agreements, such as a 90-day extension of the trade truce in July during talks in Stockholm. That truce reduced triple-digit retaliatory tariffs and allowed rare earth exports to resume.

Experts following the Madrid discussions had not expected a major breakthrough. Many analysts believed the most likely outcome was yet another extension of the deadline for ByteDance to sell TikTok’s U.S. operations. The current deadline is September 17, and if no deal is finalised by then, the app could face a ban in the country. But the news of a framework agreement, even without final details, suggested that progress had been made.

Larry Ellison — the Oracle mega-billionaire who has donated millions to the IDF — just had his kid buy Paramount/CBS to have Bari Weiss run, is trying to buy CNN, and now will buy TikTok (with Andreessen Horowitz).

Lucky break for Israel as its support collapses in the US. pic.twitter.com/W3fFYHGKPK

— Glenn Greenwald (@ggreenwald) September 17, 2025

The question of TikTok’s algorithm has been one of the most sensitive aspects of the talks. The app’s recommendation system, which determines which videos users see, has been described as the secret to TikTok’s success. The U.S. has argued that if ByteDance retains control of the algorithm, it could still influence what American users watch and potentially expose them to content shaped by Chinese interests. China, meanwhile, has insisted that the algorithm is a form of intellectual property that cannot be handed over to foreign companies.

Reports from Beijing indicated that the framework agreement may allow the U.S. version of TikTok to continue using ByteDance’s algorithm under a licensing arrangement. Wang Jingtao, deputy head of China’s cyber security watchdog, told journalists that the framework included provisions on licensing the algorithm and related intellectual property. He added that ByteDance would entrust the handling of U.S. user data and content security to American partners, though no further details were provided.

For the U.S., this arrangement raises further questions. While the licensing model could satisfy China’s demand to retain ownership of the algorithm, it remains unclear how much oversight American regulators would have. Officials have repeatedly said that any deal must reduce ByteDance’s influence over the app’s U.S. operations. Still, Bessent insisted that progress had been achieved and stressed that the talks were moving in the right direction.

What added weight to the negotiations was President Donald Trump’s firm stance. According to Bessent, Trump made it clear during internal discussions that he would be willing to let TikTok go dark in the United States if no acceptable agreement was reached. This posture, Bessent claimed, shifted the mood of the talks and gave Washington stronger leverage. “President Trump made it clear that we were not going to give up national security in favor of the deal,” Bessent said. He added that this readiness to walk away had “turned the tide” during discussions.

Trump is expected to speak directly with Chinese President Xi Jinping on Friday. Many observers believe that the final outcome of the TikTok deal will depend on this high-level conversation. William Reinsch, a trade adviser at the Center for Strategic and International Studies, said that the Madrid talks were more about preparing the ground than sealing the deal. “I’m not expecting anything substantive unless and until there is a one-on-one meeting between Trump and Xi,” he said.

BREAKING: ? ?? ?? TikTok US Deal Finalized the U.S. app will have its OWN separate Zionist algorithm

Oracle (Israeli CEO, Jewish zionist owner), Silver Lake (Zionist organisation) and Andreessen Horowitz (Jewish Zionist founder) will control US TikTok.

There will be an… pic.twitter.com/uj4zjhb345

— ADAM (@AdameMedia) September 17, 2025

Even though a framework is now in place, several details remain unsettled. Questions about the role of new American investors, the commercial structure of the deal, and the legal handling of intellectual property are still open. Bessent declined to elaborate on these terms, saying they would be discussed further after Trump’s conversation with Xi. He also pointed out that the Chinese side continues to press for concessions beyond TikTok, including the removal of certain U.S. export controls on high-tech goods such as microchips.

The timing of the talks has added to the sense of urgency. Trump is set to visit London later in the week, where he will meet King Charles and hold talks with British Finance Minister Rachel Reeves. The TikTok issue, however, is likely to remain central to U.S.-China discussions in the coming days, with a resolution needed before the September 17 deadline.

China has already notified reporters of a possible news conference to conclude the Madrid round, but whether that event will bring clarity or more delays remains to be seen. In past talks, such as those in London over rare earth shipments, negotiations stretched on longer than expected, sometimes continuing into a third day. For now, both sides appear to be holding their cards until the Trump-Xi call.

Tags: Scott BessentTikTokTreasury SecretaryUnited States
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Thomas Babychan

Thomas Babychan is an experienced business and economic journalist with a focus on international trade, stock market, banking, and multilateral organizations. He also has expertise in international relations and diplomacy.

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