• US Treasury Secretary Scott Bessent says a framework for TikTok's future is near, a key development ahead of a September 17 divest-or-ban deadline.
  • The agreement is a bargaining chip in broader US-China trade talks, which also cover tariffs and tech export controls.
  • A deal could avert a ban but would likely involve strict governance, setting a global precedent for handling foreign tech platforms.

US and Chinese negotiators are very close to finalizing a framework agreement that would resolve the ongoing standoff over the popular short-video app TikTok, according to remarks made by US Treasury Secretary Scott Bessent during trade talks in Madrid. The development comes just weeks before a critical deadline for TikTok’s Chinese parent, ByteDance, to divest its US assets or face a ban under a US national security law.

People familiar with the matter described the negotiations as intense, with Chinese officials leveraging the TikTok issue to seek broader US concessions on punitive tariffs and restrictions on technology exports. The current truce on tariffs, which has held US duties at 30% and China’s at 10%, is also a key part of the discussions and is set to expire on November 10.

“What we’re seeing is a package deal coming together,” said one person briefed on the talks, who asked not to be identified because the discussions are private. “TikTok’s fate is inextricably linked to the larger trade relationship.” The White House did not immediately respond to a request for comment.

The potential framework, details of which remain confidential, is widely seen as a way to avert an outright ban of an app used by over a billion people globally. Such a ban would cause significant disruption for US content creators, advertisers, and millions of young voters who are active on the platform. Instead, a deal would likely involve a complex restructuring of TikTok’s US operations, potentially under new ownership or with stringent data governance rules to satisfy US national security concerns.

This isn’t the first time a deadline has spurred action. The Trump administration has repeatedly extended the divestiture deadline, using it as a point of leverage. The current extension is set to expire on September 17, 2025. President Trump has previously stated that the app’s fate is “up to China,” highlighting the geopolitical nature of the negotiations.

For the global tech industry, the outcome will be closely watched as a precedent for how major powers handle disputes over data sovereignty and foreign technology platforms. A successful framework in Madrid could pave the way for a broader summit between President Trump and China’s Xi Jinping, where larger trade and technology disputes might be addressed.