After years of drama, the US and China have a deal to save TikTok

US and Chinese officials have reached a “framework agreement” that could finally end the multi-year battle over TikTok’s future in the United States. Treasury Secretary Scott Bessent announced Monday that a deal had been struck to shift the popular video app from its Chinese parent company, ByteDance, to US-controlled ownership, averting a long-threatened ban. The agreement comes just ahead of a September 17th deadline and now awaits final approval from President Donald Trump and Chinese President Xi Jinping, who are scheduled to speak on Friday.

Speaking to reporters in Madrid after two days of high-level talks, Bessent confirmed a breakthrough. “We have a framework for a TikTok deal,” he said, adding that while the specific commercial terms are private, they “have been agreed upon” between the companies involved. President Trump hinted at the news on Truth Social, posting, “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!”

A ban years in the making

This potential resolution follows a prolonged and politically charged saga over national security concerns tied to TikTok’s Chinese ownership. The fight began in 2020 when the Trump administration first tried to force a sale via executive order, though the effort was halted by the courts. The pressure returned in 2024 when Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act, a bipartisan bill signed into law by then-President Biden that gave ByteDance a nine-month deadline to divest or face a nationwide ban. Since returning to office, President Trump has repeatedly extended that deadline, allowing the app to continue operating while negotiations for a US-based acquisition continued.

What’s actually in the deal?

While officials have declined to reveal the buyer or the financial terms, the agreement is designed to place TikTok under US control. A key sticking point has always been the app’s valuable and closely guarded recommendation algorithm. In a sign of progress, Wang Jingtao, a deputy director at China’s Central Cyberspace Affairs Commission, told reporters there was a consensus on authorizing “the use of intellectual property rights such as (TikTok’s) algorithm.” The deal aims to be “fair for the Chinese and completely respects U.S. national security concerns,” according to Adweek.

Over the years, several major companies have attempted to acquire the platform. Microsoft’s early bid fell apart in what CEO Satya Nadella called “the strangest deal” he’d ever worked on, while a joint proposal from Oracle and Walmart was also shelved. Oracle has since served as TikTok’s US cloud provider to help address security concerns, and it has been floated as a likely buyer alongside other interested parties like Amazon and Blackstone.

From TikTok’s biggest foe to its potential savior

The deal marks a significant shift for President Trump, who once led the charge to ban the app but now appears to be its champion. Since re-entering the White House, Trump has credited the platform—which has over 170 million users in the US—with helping him connect with young voters. The White House even launched its own official TikTok account in August. The TikTok negotiations were the primary focus of the Madrid talks, which also touched on broader trade disputes involving tariffs, rare earth minerals, and microchips. U.S. Trade Representative Jamieson Greer stated that while another extension of the September 17th deadline may be needed to finalize everything, the repetitive delays should be over. “We have a deal,” he said.