The United States announced on Monday that it has reached a “framework” deal with China to resolve the long-running dispute over TikTok, just days before a deadline requiring the Chinese-owned app to be sold or face a ban in America.
In a social media post, President Donald Trump said a deal had been reached with a “certain company that young people in our Country very much wanted to save.” While he did not mention TikTok by name, his message suggested the popular platform, which has nearly two billion users worldwide, is set to avoid a ban. Trump added that he would hold talks with Chinese President Xi Jinping on Friday to finalize the arrangement.
US Treasury Secretary Scott Bessent confirmed the breakthrough after two days of negotiations in Madrid with Chinese Vice Premier He Lifeng. “We have a framework for a TikTok deal,” Bessent told reporters, noting that the Trump–Xi conversation would be key to completing the agreement.
The deal comes as a federal law requiring TikTok’s sale or ban on national security grounds was scheduled to take effect on the eve of Trump’s second inauguration in January. Though the former president initially supported the legislation, he later paused the enforcement, extending the deadline by 90 days in June. That extension is set to expire on Wednesday.
Trump’s shift reflects a growing belief that TikTok played a role in helping him win over younger voters in the 2024 election. His campaign relied heavily on social media, and despite earlier threats of a ban or forced divestment, he has since vowed to defend the app.
Beijing’s commerce ministry has urged Washington to resolve disputes through “mutual respect and equal consultations.” Officials confirmed the Madrid talks also covered broader trade issues, including Trump’s threat of steep tariffs on Chinese imports. In his Truth Social post, Trump declared the meeting in Europe had gone “VERY WELL!” and insisted the US-China relationship remained “a very strong one.”
Trade tensions between the two economic giants spiked earlier this year with tit-for-tat tariffs, but both sides later scaled back, with Washington imposing 30 percent duties on Chinese goods and Beijing responding with a 10 percent levy on US products. That truce, however, is due to expire in November, and Washington has accused Beijing of dragging its feet on export license approvals for rare earths, a critical resource for automotive, electronics and defense industries.
Meanwhile, Beijing has intensified its scrutiny of the US semiconductor sector. Over the weekend, China launched two investigations into American chip exports, including an anti-dumping probe into integrated circuits. On Monday, authorities said they had found Nvidia in violation of the country’s antitrust rules, with further inquiries planned. The move underscores the high-stakes competition between the US and China for dominance in semiconductors, one of the most critical battlegrounds in global technology.
Diplomatic channels remain open, with top officials from both nations holding back-to-back calls last week. Analysts suggest these exchanges may pave the way for an in-person meeting between Trump and Xi. Trump has already indicated he expects to travel to China either later this year or shortly after, pointing to what he described as improving economic ties between the two nations.
