The United States and China have agreed on a framework to transfer ownership of TikTok&rsquo;s American operations. The understanding emerged during trade talks in Madrid and is expected to be finalised when US President Donald Trump and Chinese President Xi Jinping meet later this week.
The deal comes as a deadline approaches for ByteDance, TikTok&rsquo;s parent company, to sell its US division or face a ban. Earlier this year, the US Supreme Court upheld legislation requiring the sale, citing national security risks posed by TikTok&rsquo;s access to American user data.
The framework is designed to safeguard US security interests while opening the door for American ownership. It reportedly removes Chinese demands for tariff reductions in exchange for concessions on TikTok, a move credited to Washington&rsquo;s threat of a shutdown.
While details remain unclear, unresolved questions surround the control of TikTok&rsquo;s recommendation algorithm, the domestic storage and encryption of US user data, and the presence of independent audits to rule out foreign access.
Experts warn that without clear measures, the agreement could resolve ownership but leave vulnerabilities intact. The outcome of the leaders&rsquo; review will determine if this marks a breakthrough in both technology governance and US-China trade relations.

Washington and Beijing agree on a framework paving way for US ownership of TikTok

US, China Reach Framework Deal on TikTok

Washington and Beijing agree on a framework paving way for US ownership of TikTok

September 16, 2025 | 14:51 IST