Former US president Donald Trump indicated that Washington and Beijing had reached an agreement on the future of TikTok’s American operations, suggesting a breakthrough in a long-running dispute over the Chinese-owned social media platform. He also confirmed plans to speak with Chinese President Xi Jinping later this week, highlighting the strength of the relationship between the two countries.
Trump made the announcement on his Truth Social account shortly before the conclusion of two days of trade negotiations between the United States and China in Madrid. The talks, which ended on Monday, were described by Trump as having “gone very well.” Without naming TikTok directly, he wrote: “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.” He later added that he would speak with Xi on Friday, noting, “The relationship remains a very strong one!!!”
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Framework for TikTok Agreement
Treasury Secretary Scott Bessent, who led the US delegation in Madrid, confirmed immediately after the negotiations that the two countries had agreed on a “framework” for TikTok’s operations in the United States. He explained that the deal would be reviewed and approved by Trump and Xi on Friday. The agreement follows repeated delays of a congressionally mandated deadline requiring TikTok’s parent company, ByteDance, to divest its American operations or face a nationwide ban. The administration has already extended the deadline three times since January, with the most recent deadline falling on Wednesday.
Speaking to reporters in Madrid, Bessent confirmed that the framework plan would place TikTok under “US-controlled ownership,” though he declined to provide more detail, saying it would be premature to do so before the planned call between Trump and Xi. “We have a framework. They’ll have to confirm the deal,” he stated.
Wider US-China Negotiations
The Madrid negotiations were the latest in a series of meetings between the US and China, following previous rounds in Geneva, London, and Stockholm. These talks took place against the backdrop of ongoing discussions about a possible summit between Trump and Xi. The Financial Times reported that Beijing had formally invited Trump to visit for a summit in China, but the White House had not yet responded.
The hesitation in Washington stemmed from limited progress on broader trade issues, particularly concerning fentanyl, as well as internal debate within the Trump administration about whether a meeting with Xi should occur in Beijing. Some officials suggested that the leaders instead meet on the sidelines of the Asia-Pacific Economic Cooperation forum, scheduled for October 31 in South Korea. Resolving the TikTok issue is seen as removing a significant obstacle that has complicated the broader trade discussions, though disagreements remain over US demands for China to curb exports of fentanyl precursor chemicals before tariffs related to the substance can be reduced.
US Trade Representative Jamieson Greer, also in Madrid, said it was possible another short extension of the TikTok deadline would be required to finalize the deal but stressed that no further rolling extensions would be offered. “One more deadline extension might be necessary,” he said.
Nvidia Investigation Adds Pressure
As Bessent continued negotiations with Chinese Vice-Premier He Lifeng, the Chinese State Administration for Market Regulation (SAMR) announced it had determined that US chipmaker Nvidia violated the country’s antitrust laws. The preliminary finding stated that Nvidia failed to fully comply with commitments made during its acquisition of Mellanox Technologies, an Israeli-US supplier of networking products, in 2020. Sources familiar with the situation said SAMR had reached this conclusion weeks earlier but released the information during the Madrid talks to strengthen China’s negotiating position.
When asked if Nvidia’s case had been discussed, Bessent acknowledged it was raised, commenting: “We discussed the poor timing of the Nvidia investigation [on] the day of these talks.”
Trump Signals TikTok Agreement Nears
The developments in Madrid suggest that both the United States and China are moving closer to resolving the long-running dispute over TikTok’s future in the US. Trump’s remarks and Bessent’s confirmation of a framework deal point toward a significant step forward, though the final approval rests on the upcoming call between Trump and Xi. While the resolution of the TikTok matter may help clear one obstacle, major disagreements remain in broader trade negotiations, particularly regarding fentanyl exports and tariffs. The outcome of Friday’s discussions could play a decisive role in shaping the future of both the TikTok deal and the overall trajectory of US-China relations.
