TLDR
- US President Donald Trump will speak with Chinese leader Xi Jinping on Friday in their first direct engagement since June
- US Treasury Secretary Scott Bessent announced a framework has been reached to keep TikTok running in the US
- The deal involves switching TikTok to US-controlled ownership, with Oracle Corp among potential investors
- A TikTok agreement was necessary for Trump-Xi to meet in person at the APEC summit in South Korea next month
- Chinese officials raised concerns about US sanctions and urged Washington to lift restrictions during Madrid talks
The United States and China have reached a preliminary agreement to keep TikTok operating in America. The framework was announced during high-level talks in Madrid between US Treasury Secretary Scott Bessent and Chinese officials.
President Donald Trump confirmed he will speak with Chinese leader Xi Jinping on Friday. This would mark their first direct conversation since June and comes as both nations work toward resolving the TikTok dispute.
The Madrid discussions focused primarily on finding a solution for the Chinese-owned app. ByteDance Ltd.’s TikTok faced a looming deadline to comply with US national security legislation that took effect in January.
Chinese Vice Commerce Minister Li Chenggang told reporters that a “consensus” framework had been reached on TikTok. However, Beijing emphasized it would not sacrifice core principles for any deal.
The specific terms of the agreement remain unclear. US officials have not detailed whether the framework fully satisfies the requirements of the national security law that mandates divestment of TikTok’s American operations.
Deal Critical for Future Meetings
The TikTok agreement was essential for future diplomatic engagement between the two leaders. US officials indicated that without a TikTok deal, a Trump-Xi meeting would have been impossible.
The leaders are expected to meet at the Asia Pacific Economic Cooperation gathering in South Korea next month. A potential Trump state visit to China also hinged on resolving the TikTok issue.
Oracle Corp has emerged as a key player in the proposed solution. The technology company has previously worked with TikTok on Project Texas, an initiative designed to separate US user data from ByteDance’s Chinese operations.
Oracle was also the leading candidate to acquire part of TikTok’s business in 2020. During Trump’s first presidency, he attempted to ban the app over national security concerns but was unsuccessful.
Framework Details
Bessent indicated the framework involves switching TikTok to US-controlled ownership. Wang Jingtao from China’s Cyberspace Administration mentioned methods such as entrusted operation of TikTok’s US user data.
The Chinese official also referenced algorithms and intellectual property rights without providing specific details. China’s government will examine and approve relevant technology export matters and licensing agreements according to Chinese law.
Chinese representatives raised broader concerns about US sanctions during the Madrid talks. They urged Washington to lift various restrictions as soon as possible.
The discussions come as both nations have suspended their most extreme economic measures. US tariffs had reached as high as 145% before the current pause, with the next deadline scheduled for mid-November.
US Trade Representative Jamieson Greer suggested another extension of the tariff pause is possible. He indicated this would depend on talks continuing in a positive direction when the November deadline arrives.
The Madrid meeting focused specifically on TikTok, with other trade negotiations deferred to future discussions. Bessent announced that broader trade talks will resume in about a month at a different location.
