Deal on TikTok: Will the U.S. Gain Partial Ownership?
The announcement came during trade talks in Madrid, and both President Donald Trump and Chinese President Xi Jinping are expected to finalize the deal this Friday.
Trump stated on Truth Social that discussions have gone “very well.” While China has acknowledged the framework, it emphasized that no agreement will come at the expense of Chinese companies’ interests.
For months, TikTok’s parent company ByteDance faced a U.S. deadline to sell its American operations or risk a nationwide ban. The pressure to avoid a shutdown reportedly pushed Chinese negotiators to drop demands for reduced U.S. tariffs.
Bessent said the agreement safeguards U.S. national security interests. However, U.S. Trade Representative Jamison Greer clarified that the deal still depends on “leaders’ approval” and warned against repeatedly extending the ban deadline.
On the Chinese side, top trade negotiator Li Chenggang insisted that Beijing will not compromise its policies or corporate interests and that any deal must undergo thorough review by Chinese leadership.
The dispute stems from an April 2024 law requiring ByteDance to divest TikTok’s U.S. business or face a ban. In January, the U.S. Supreme Court upheld the law, calling TikTok’s data collection a “serious national security risk.”
Although ByteDance has repeatedly argued its U.S. operations are independent and do not share data with Beijing, officials remain unconvinced. Earlier this year, TikTok was briefly shut down in the U.S. before Trump intervened to grant a 75-day suspension of the ban.
