TikTok Deal: US and China Reach Framework Agreement

TikTok Deal Reached Between U.S. and China

A preliminary agreement concerning the social media application TikTok has been achieved between the United States and China, according to reports from CNBC. This information was conveyed by Treasury Secretary Scott Bessent.

Bessent indicated that the agreement is a matter between two distinct private entities, with the commercial aspects now settled. His statement was made during a meeting held in Madrid on Monday between representatives of both nations.

Trump's Announcement

This development follows shortly after U.S. President Donald Trump suggested on his social media platform, Truth Social, that a resolution regarding the short-video application had been attained.

On Tuesday, President Trump informed reporters that the agreement is now complete and that an announcement regarding the purchaser is forthcoming.

“An accord was also secured concerning a ‘specific’ company that is highly valued by young people within our nation,” Trump stated in his post, also mentioning a planned conversation with China’s President Xi Jinping on Friday.

Background and Negotiations

Trump’s announcement arrives just prior to the fourth deadline for a potential TikTok ban, scheduled for September 17th. Delegations from both the U.S. and China convened in Madrid today to engage in discussions pertaining to economic policy.

In June, the President had previously indicated the identification of potential buyers for TikTok.

Prior to Monday’s developments, Reuters reported that the U.S. was prepared to prohibit the social media application should China not retract its requests for tariff reductions and the easing of restrictions on its technological capabilities.

Previous Bans and Executive Orders

A ban on TikTok was initially implemented on January 19th following the enactment of federal legislation signed by former President Joe Biden.

However, since assuming office, President Trump has issued several executive orders aimed at maintaining the application’s functionality within the country.

This report has been updated to include President Trump’s announcement regarding the deal, as of Tuesday.