US, China reach framework deal on TikTok as Trump prepares call with Xi

Lawmakers in US Congress would need to sign off the final deal

The United States and China have reached a tentative framework agreement on the future of TikTok's US operations, paving the way for a potential breakthrough in strained trade talks between the world's two largest economies.

President Donald Trump said he will speak directly with Chinese President Xi Jinping on Friday to finalise the arrangement.

Trump, posting late Monday on his Truth Social platform as two days of negotiations wrapped up in Madrid, declared that the latest round of discussions had "gone very well."

Without naming the social media app, he hinted at a resolution: "A deal was also reached on a 'certain' company that young people in our Country very much wanted to save. They will be very happy."

"The relationship remains a very strong one!!!" he added.

Treasury Secretary Scott Bessent, who led the US delegation in Madrid, later confirmed that negotiators had agreed to a TikTok framework, though details remain under wraps until Trump and Xi approve it during their call.

"We have a framework. They'll have to confirm the deal," Bessent told reporters, according to the Financial Times.

The potential deal could bring TikTok, which has 170 million American users, under US-controlled ownership, addressing national security concerns that user data could be accessed by Beijing.

Lawmakers in Congress, which passed a divestiture law in 2024, would still need to sign off.

The agreement marks a rare moment of progress in months of contentious negotiations between the US and China.

Broader trade talks between the two countries have been bogged down by disputes over fentanyl precursor exports, tariffs, and Washington's demands that allies impose levies on Chinese goods in response to Beijing's purchase of Russian oil.

Trump, who has credited TikTok with helping him connect to voters during his 2024 re-election campaign, has resisted calls for an outright ban.

His personal account on the app has 15 million followers, and the White House itself launched an official TikTok channel last month.

A forced shutdown, officials acknowledge, could alienate millions of young voters. Still, Trump's aides have signalled that this agreement may not be the final word.

US Trade Representative Jamieson Greer said another short extension could be needed to finalise details, though he warned that "there would be no more rolling extensions."

The Madrid round was the fourth in a series of meetings that began in Geneva, London, and Stockholm.

The discussions also touched on a potential summit between Trump and Xi. Beijing has formally invited Trump to visit China, but the White House has not responded.

Some US officials prefer arranging a sideline meeting during the Asia-Pacific Economic Cooperation forum in South Korea on 31st October.

Meanwhile, tensions spilled into other areas. Chinese authorities announced on Monday that an initial investigation into US chipmaker Nvidia concluded the firm was in violation of the country's anti-monopoly regulations. Bessent said the announcement on Nvidia was poor timing.

The probe is widely regarded as retaliation against US limits on China's semiconductor industry.