Madrid, Spain (Enmaeya News) — The Trump administration announced Monday it has reached a framework deal with China to keep TikTok operational in the United States, concluding years of negotiations over the popular video app’s future.
U.S. Treasury Secretary Scott Bessent confirmed the agreement, adding that President Donald Trump is scheduled to speak with Chinese leader Xi Jinping on Friday to finalize the deal. That call could pave the way for a long-awaited Trump-Xi summit later this year.
“President Trump played a key role in this outcome,” Bessent told reporters in Madrid. “Without his leadership and the leverage he provided, this deal would not have been possible.”
The administration did not name the U.S.-backed buyer, though officials and analysts widely expect the group to be led by Oracle co-founder and executive chairman Larry Ellison. Ellison, a Trump supporter, was championed by the president earlier this year as a strong candidate to acquire TikTok’s U.S. operations. Oracle already hosts TikTok’s American user data and nearly struck a deal with ByteDance, TikTok’s parent company, in 2020.
Chinese Vice Commerce Minister Li Chenggang confirmed that negotiators had reached a “basic framework consensus” that addresses U.S. national security concerns while ensuring fair treatment of Chinese businesses. The framework includes provisions for entrusted management of U.S. TikTok user data, licensing of algorithms, and expanded economic cooperation, according to Chinese state media.
Talks were held in Madrid alongside broader U.S.-China trade discussions. U.S. Trade Representative Jamieson Greer said the agreement strikes a balance between protecting American security interests and providing a fair investment climate. “National security always comes first,” he said.
The deal comes after a turbulent few years for TikTok in the United States. A bipartisan bill signed by former President Joe Biden banned the app unless its Chinese parent company divested its U.S. assets. TikTok briefly went offline in January before Trump, at the start of his second term, issued executive actions delaying enforcement of the law multiple times. The latest deadline had been set for Sept. 17.
TikTok has roughly 170 million users in the United States, a demographic Trump has credited with boosting his 2024 re-election campaign. Analysts say this support likely influenced his shift from initially seeking a ban on the platform to working toward a deal.
Other investment groups, including a bid led by former Los Angeles Dodgers owner Frank McCourt and investor Kevin O’Leary, expressed interest in acquiring TikTok. But those groups lacked the financial capacity to secure the app’s algorithm, a core asset estimated to be worth tens of billions of dollars.
Details on the structure of the final agreement remain unclear, particularly regarding whether any Chinese ownership of the U.S. business will be permitted. Beijing had long resisted allowing ByteDance to sell its stake, but recent trade frictions — including China’s announcement that Nvidia violated antitrust laws — appear to have shifted its stance.
Officials said reaching a TikTok deal was essential for progress on a Trump-Xi meeting, which could occur during Trump’s planned Asia trip in late October or early November.
