Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
The Trump administration announced Monday that a framework agreement has been reached with China to allow TikTok to continue operating in the United States, concluding a yearslong effort initiated during President Donald Trump’s first term. US Treasury Secretary Scott Bessent confirmed the deal in Madrid, where diplomats were engaged in trade talks, adding that President Trump is scheduled to meet with Chinese leader Xi Jinping on Friday to finalize the arrangement.
Negotiations and Leadership
Secretary Bessent underscored President Trump’s direct involvement in securing the agreement. “President Trump played a role in this, we had a call with him last night, we had specific guidance from him we shared it with our Chinese counterparts,” Bessent stated from Madrid. He further credited Trump’s leadership and leverage as crucial to reaching the deal.
The announcement came as Chinese and US diplomats convened in Spain for discussions on trade and other bilateral matters. Bessent, leading the US delegation, had previously indicated that TikTok’s future was a key item on the agenda for these latest rounds of trade talks.
National Security and Fair Investment
Bessent emphasized the dual objectives of the agreement. “We were very focused on TikTok and making sure that it was a deal that is fair for the Chinese and completely respects US national security concerns, and that’s the deal we reached,” he explained. He also noted the importance of ensuring a fair investment environment for Chinese entities in the U.S., while prioritizing American national security.
The agreement follows a period of repeated extensions by Trump on a self-imposed deadline for China to divest at least part of TikTok’s US operations to an American-backed owner. This pressure stemmed from a bipartisan bill, signed by President Joe Biden, which mandated a ban on TikTok in the United States unless its China-based owner divested its stake in the social media company’s US assets.
President Trump’s Confirmation
President Trump had hinted at the impending agreement earlier on Monday through a post on Truth Social. “The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly,” Trump posted. He added, “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! I will be speaking to President Xi on Friday.”
Looking Ahead
The framework agreement marks a significant development in the ongoing saga surrounding TikTok’s operations in the United States. The upcoming meeting between President Trump and Chinese leader Xi Jinping on Friday is expected to formalize the terms, bringing a resolution to the long-standing dispute over the popular social media platform.