the us and china might finally have The United States and China appear to be on the verge of finalizing a significant deal regarding TikTok, potentially reshaping the app’s ownership structure amid ongoing geopolitical tensions.
the us and china might finally have
Framework Agreement Announced
During trade talks in Madrid on Monday, U.S. Treasury Secretary Scott Bessent revealed that the two nations have reached a “framework” deal aimed at divesting TikTok from its Chinese parent company, ByteDance. This announcement marks a critical development in the protracted negotiations surrounding the popular social media platform, which has been under scrutiny from the U.S. government due to national security concerns.
Bessent confirmed to reporters that “the framework is for a switch to a U.S.-controlled ownership.” This statement indicates a significant shift in the app’s operational control, which has been a contentious issue since the Trump administration first raised concerns about the app’s data privacy practices and potential ties to the Chinese government.
Upcoming Confirmation from Leaders
President Donald Trump is expected to confirm the details of this deal with Chinese President Xi Jinping on Friday, just two days after the latest deadline for TikTok to either sell its U.S. operations or face a ban. This meeting is anticipated to be pivotal in determining the future of TikTok in the American market, as both leaders have a vested interest in reaching a mutually beneficial agreement.
Background of the Negotiations
The negotiations surrounding TikTok have been fraught with challenges and complexities. The app faced a potential ban earlier this year, prompting Trump to grant TikTok an extension to negotiate a sale of its U.S. operations. This extension was part of the requirements outlined in the Protecting Americans from Foreign Adversary Controlled Applications Act, which aims to mitigate risks associated with foreign-owned applications that could compromise U.S. national security.
Since then, TikTok has received multiple extensions, with the most recent deadline set for September 17th. However, it remains unclear whether Trump will formally extend this deadline again or if the announcement of the framework deal will suffice to meet the divestiture requirements laid out in the law. The ambiguity surrounding this aspect raises questions about the enforceability of the agreement and its implications for TikTok’s future in the U.S.
Challenges in the Negotiation Process
Despite the progress made, Bessent acknowledged that the U.S. and China are “very close” to finalizing the deal, but he also noted that China had some “very aggressive asks.” This statement highlights the complexities involved in the negotiations, as both parties have competing interests that must be reconciled for a successful agreement.
Earlier this year, negotiations had come close to yielding a deal, but they ultimately fell through due to the escalating trade war between the U.S. and China. This backdrop of tension complicates the current discussions, as both nations navigate not only the specifics of the TikTok deal but also broader economic and political relations.
Potential Investors and Stakeholder Reactions
Reports from The Information and Reuters in July indicated that Oracle, along with several other investors such as Susquehanna International Group and Andreessen Horowitz, were interested in making a bid for TikTok. Under the proposed arrangement, ByteDance would retain a minority stake in the app, allowing for a hybrid ownership model that could potentially satisfy regulatory concerns while still providing a degree of Chinese oversight.
This potential investment structure reflects a growing trend among companies looking to navigate the complexities of international ownership and regulatory compliance. By allowing a U.S. company to take control of TikTok while still permitting some level of Chinese involvement, stakeholders may be attempting to strike a balance that addresses national security concerns without completely severing ties with ByteDance.
Technological Developments
In addition to ownership discussions, TikTok is reportedly working on developing a new version of the app that would utilize an algorithm trained exclusively on data from U.S. users. This move could serve to alleviate some of the concerns raised by U.S. lawmakers regarding data privacy and security, as it would limit the app’s reliance on data from international users.
By focusing on U.S. user data, TikTok may be attempting to demonstrate its commitment to safeguarding American users’ information, which has been a significant point of contention in the negotiations. This development could also enhance the app’s appeal to U.S. regulators, as it aligns with the broader push for data localization and user privacy protections.
Political Implications and Future Outlook
The potential TikTok deal carries significant political implications for both the U.S. and China. For the Trump administration, successfully negotiating a divestiture could be framed as a victory in the ongoing struggle to protect American interests from foreign adversaries. This narrative could resonate with voters concerned about national security, particularly in the lead-up to the upcoming election.
Conversely, for China, maintaining some level of control over TikTok could be seen as a way to preserve its influence in the global tech landscape. The app has become a cultural phenomenon, particularly among younger audiences, and its continued operation in the U.S. market is crucial for ByteDance’s overall business strategy.
Public Sentiment and User Reactions
Public sentiment regarding the potential TikTok deal is mixed. Many young users of the app have expressed concerns about the possibility of a ban, as TikTok has become an integral part of their social media experience. The platform has not only provided entertainment but has also served as a space for creativity and self-expression.
In a post on Truth Social, Trump indicated that the meeting between the U.S. and China went “VERY WELL,” adding that “a deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save.” This statement reflects the administration’s awareness of the app’s popularity and the potential backlash that could arise from a ban.
Conclusion
As the U.S. and China move closer to finalizing a framework deal regarding TikTok, the implications of this agreement will be closely monitored by stakeholders on both sides. The negotiations highlight the complexities of international business in an era marked by geopolitical tensions and national security concerns. The outcome of this deal could set a precedent for how foreign-owned applications are managed in the U.S. and may influence future discussions around technology, data privacy, and international relations.
Source: Original report
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Last Modified: September 15, 2025 at 7:36 pm
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