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The US and China have reached a “framework” deal for social media platform Tiktok, the Treasury Department Scott Bescent said Monday.
“It lies between two private parties, but commercial terms are agreed,” he said from the US-China conference in Madrid.
Both President Donald Trump and Chinese President Xi Jinping will meet on Friday to discuss the conditions. Trump also said in Monday’s Truth Social Post that he reached a deal “at a “specific” company that young people in our country were very eager to save.”
Bessent has shown that the framework can pivot the platform into US controlled ownership.
Comments came during the latest trade debate between the US and China. Relations between the two countries have become sour in recent months due to Trump’s tariffs and other trade restrictions.
At the same time, Buitedan, the parent company of Tiktok, is facing a September 17 deadline, which will either sell the platform’s US business or close domestically.
US trade representative Jamieson Greer said Monday that it may be necessary to push back the deadline to close the deadline, but there are no continuous extensions.
Congress passed a law last year that allowed laws like App Store Operators apple and Google From distributing Tiktok in the US for its “foreign hostile application” status.
However, Trump postponed the shutdown in January and signed an executive order in January, which gave him another 75 days to make the deal. The executive orders in April and June caused further expansion.
Commerce Secretary Howard Lutnick said in July that if China doesn’t give the US more autonomy over the popular short video app, Tiktok would shut down for Americans.
Regarding who controls the platform, Trump told Fox News in June that there was a group of “very wealthy people” ready to buy the app, and that they could reveal their identity in two weeks. The release never came.
He previously said he would be open Oracle Chairman Larry Ellison or Tesla CEO Elon Musk has purchased Tiktok, a US artificial intelligence startup.
Trump told CNBC in an interview last year that the White House launched Tiktok accounts in August, but he believes the platform is a national security threat.
