The long-running dispute between the United States and China over TikTok has reached another turning point, with officials from both sides confirming that a framework deal has been struck to keep the short-video app operational in the American market. The agreement, which still requires final confirmation from U.S. President Donald Trump and Chinese President Xi Jinping during a scheduled phone call on Friday, represents one of the rare instances of progress in an otherwise strained trade relationship. For months, TikTok’s future in the U.S. has been clouded by political battles, court rulings, and national security concerns. The latest development provides temporary relief to the app’s 170 million American users, who have been waiting anxiously to see whether one of their favourite social platforms will survive the ongoing tensions between Washington and Beijing.
TikTok, owned by the Chinese company ByteDance, has been at the centre of political debates in Washington since the early years of Trump’s presidency. Critics of the app argue that its data collection practices could expose U.S. user information to the Chinese government, raising fears of surveillance or influence campaigns. Lawmakers passed legislation in 2024 requiring ByteDance to divest its American operations or face a nationwide ban. Although the law was signed by then-President Joe Biden, Trump has since been tasked with enforcing it after returning to office in 2025. His approach has been a mixture of threats of shutdowns, repeated deadline extensions, and negotiations with Chinese officials. The latest framework deal appears to be the closest both sides have come to an arrangement that satisfies the demand for U.S. control while also preserving elements of the app that Beijing considers culturally important.
U.S. Treasury Secretary Scott Bessent, who has been leading the negotiations, told reporters after talks in Madrid that the September 17 deadline played a decisive role in moving the Chinese side toward compromise. He said the deadline, which would have forced TikTok off U.S. app stores, could now be extended by 90 days to allow the deal to be finalized. While Bessent refused to reveal the specific commercial terms, he hinted that the arrangement would meet U.S. security concerns while protecting what Chinese officials have described as the app’s “Chinese characteristics.” By this, Beijing means the cultural elements and features that have helped TikTok gain global influence, which Chinese officials often portray as a form of soft power.
Trump himself has repeatedly shifted his stance on the app. During his first term, he advocated for a complete ban, arguing that national security had to take precedence. Later, however, he credited TikTok with helping him connect to young voters, claiming the platform played a role in his re-election victory in 2024. Today, his personal account has more than 15 million followers, and the White House recently launched its own official account, a sign of how deeply embedded the app has become in American political communications. In a post on Truth Social earlier this week, Trump hinted at progress by writing that a deal had been reached on a “certain” company that young Americans were keen to preserve. He promised that his conversation with Xi Jinping on Friday would confirm the outcome.
One of the unanswered questions is the identity of the U.S. buyer who would gain control of TikTok’s American business. Reports suggest that a group led by Oracle’s executive chairman Larry Ellison is the frontrunner. Ellison, a strong supporter of Trump, has the financial backing and existing ties with TikTok, as Oracle already hosts the company’s U.S. data. Although other investors, including former Los Angeles Dodgers owner Frank McCourt and “Shark Tank” star Kevin O’Leary, have shown interest, their proposals appeared less viable because of the high price tag attached to TikTok’s assets, especially its proprietary recommendation algorithm. Industry analysts believe Ellison’s group is best positioned to secure the deal, given his company’s past involvement and capacity to acquire the technology that makes TikTok so addictive to its users.
China, however, has been hesitant to allow ByteDance to hand over full control of its prized asset. Wang Jingtao, a senior official from China’s cyberspace regulator, told reporters in Madrid that the arrangement may include the licensing of intellectual property rights and algorithms rather than outright transfer. This would mean TikTok’s American operation could run independently while still relying on some technology owned by ByteDance. Such a model might help Beijing save face domestically, as Chinese authorities have consistently argued that the U.S. should not interfere in the operations of Chinese companies under the banner of national security. Chinese negotiator Li Chenggang described the outcome as a “basic framework consensus” rather than a final deal, suggesting that both sides still have ground to cover before a legally binding agreement is signed.
The talks in Madrid were not only about TikTok. They also formed part of wider trade negotiations between the two economic powers, who have been engaged in a prolonged trade war marked by tariffs, export controls, and restrictions on advanced technology. The meeting was the fourth round of discussions in four months, with both delegations shuttling across European cities in search of breakthroughs. Bessent acknowledged that other topics, including U.S. restrictions on semiconductor exports and China’s purchases of Russian oil, were also discussed. Meanwhile, Beijing’s announcement of an anti-monopoly investigation into U.S. chip giant Nvidia on the same day cast a shadow over the proceedings. The timing of the probe was widely seen as a retaliatory move against Washington’s curbs on Chinese access to high-tech components.
Still, the fact that both sides are willing to compromise on TikTok could pave the way for broader diplomatic engagement. Trump has long expressed interest in meeting Xi Jinping in person, and Chinese officials are said to be keen to host him in Beijing later this year. Sources familiar with the talks suggest that without a breakthrough on TikTok, a potential Trump-Xi summit would have been off the table. Now, the deal may serve as the foundation for such a meeting, which could take place during Trump’s planned trip to Asia at the end of October. Both leaders are expected to use Friday’s phone call not only to finalize the TikTok deal but also to discuss the possibility of setting up the summit.
Despite the cautious optimism, there are still hurdles ahead. Any final agreement is likely to require approval from Congress, where lawmakers have taken a hard line against Chinese technology companies. In 2024, Congress passed legislation mandating TikTok’s divestiture precisely because of fears that Beijing could access user data or exploit the platform for influence operations. Critics of Trump argue that his repeated extensions of the deadlines have undermined the intent of that law, while supporters say his negotiating strategy has given Washington more leverage over Beijing. Either way, the coming weeks will determine whether the framework deal becomes a lasting settlement or another failed attempt like the one announced earlier this year.
For now, TikTok’s millions of American users can breathe a little easier, knowing that their favourite app is not disappearing overnight. But uncertainty still hangs over the platform’s future, as the finer details of ownership, technology licensing, and congressional approval remain unresolved. What is clear, however, is that TikTok has become far more than a social media app. It has turned into a bargaining chip in one of the most consequential economic and political rivalries of the modern era. The Trump administration may claim a victory for protecting national security while keeping the app alive, and Beijing may argue that it has safeguarded its cultural influence. But the real test will be whether the deal can endure the pressures of domestic politics, international diplomacy, and the fast-changing world of technology.
