U.S. and China Strike Framework Deal to Keep TikTok in the U.S.

Lead U.S. and Chinese officials announced today that they have agreed on a framework to transfer TikTok’s American operations to U.S. control, averting a potential ban ahead of the September 17 divestiture deadline.

Nut Graf The preliminary agreement, reached during trade talks in Madrid, paves the way for ByteDance to divest TikTok’s U.S. arm to a consortium led by major tech firms. It signals a breakthrough in long-running national security concerns over foreign ownership of the popular short-video app.

Key Details

• Officials said U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng finalized the “framework” after two days of negotiations, with President Trump and President Xi Jinping set to confirm the deal on Friday.
• Oracle, joined by other U.S. investors, is reported to form the consortium that will assume control of TikTok’s U.S. business, ensuring continued operation for its 170 million American users.
• The deal addresses Washington’s demand for U.S. ownership and strict data-security measures, though specifics on algorithm access and data storage remain under negotiation.
• The framework agreement may extend the September 17 deadline by up to 90 days to finalize commercial terms and regulatory approvals.

Context and Implications TikTok’s Chinese parent, ByteDance, faced mandated divestiture under U.S. law over fears its Chinese ownership could allow government access to American user data. A shutdown would have disrupted millions of users and drawn political backlash. The new framework is designed to balance U.S. national security with the app’s cultural and economic impact.

What’s Next Delegations from both governments will brief their leaders on Friday, with final signatures expected soon after. Congress may still need to ratify the sale structure, and regulators will scrutinize data-security protocols and algorithm controls before full approval.