US and China Reach Tentative TikTok Deal; Trump and Xi to Talk Friday

US and Chinese officials announced Monday they’ve reached a tentative deal to transfer ownership of the popular short-video app TikTok to US-based entities. The agreement is set to be finalized during a Friday phone call between US President Donald Trump and Chinese President Xi Jinping.

The deal is a rare step forward in months of negotiations between the world’s two largest economies, which have been working to ease a trade conflict unsettling global markets. TikTok, with about 170 million US users, has been a focal point due to fears its Chinese parent company, ByteDance, could share user data with Beijing, potentially enabling spying or influence campaigns.

After talks in Madrid, US Treasury Secretary Scott Bessent said a September 17 deadline that risked disrupting TikTok’s US operations spurred progress. He noted the deadline could be extended by 90 days to seal the deal but kept details under wraps.

Bessent stressed that the agreement would respect certain “Chinese characteristics” valued by Beijing as cultural soft power. “They care about the app’s Chinese elements. We’re focused on national security,” he told reporters after two days of discussions.

This is the second attempt this year to resolve TikTok’s status, following a failed March effort. The deal may need approval from the Republican-controlled Congress, which passed a 2024 law mandating divestiture over concerns about Chinese access to US user data.

The Trump administration has avoided shutting down TikTok, wary of alienating its massive user base and its role in political messaging. Trump credits TikTok for aiding his re-election, with his account boasting 15 million followers. The White House recently launched its own TikTok account.

On his Truth Social platform, Trump posted: “A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!”

Bessent didn’t confirm if ByteDance would transfer TikTok’s core technology to a US buyer. A Chinese official, Wang Jingtao, suggested the deal might involve licensing intellectual property, like algorithms.

Beyond TikTok, the US has blocked advanced tech exports, like semiconductors, to China over security concerns. China’s lead negotiator, Li Chenggang, called these restrictions “unilateral bullying,” adding that the US can’t demand cooperation while targeting Chinese firms.

The Madrid meeting, the fourth in four months, tackled trade disputes and TikTok’s future. Led by Bessent and Chinese Vice Premier He Lifeng, these talks have addressed tariff escalations and disruptions in rare earth supplies to the US.

Trump has expressed interest in meeting Xi, with China pushing for a Beijing summit. A source said the US used the prospect of a fall meeting to push for the TikTok deal. The leaders will discuss this Friday.

The talks coincided with US pressure on allies to tariff Chinese imports tied to Russian oil purchases, which China called coercive. Separately, China announced a probe into US chipmaker Nvidia for anti-monopoly violations, seen as a response to US chip sector restrictions. Bessent criticized the timing.