This clears the way for the takeover of the popular short video platform by US investors. US President Donald Trump will clarify the details in a direct meeting with Chinese President Xi Jinping on Friday.
Trump had previously hinted at an agreement in a post on his short message service, Truth Social. The deadline for the forced sale of TikTok, which expires on September 17, is expected to be extended once again, said US Trade Representative Jamieson Greer. This would create time to finalize the deal."Without the framework agreement, there would be no extension," Greer emphasized. A senior US official had previously said his country would ban TikTok if China did not back down from its demand for a reduction in US import tariffs and an easing of the embargo on high-tech exports.
TikTok is a political issue
The video platform, used by 170 million US citizens, was one of the points of contention in the negotiations between the US and China in the Spanish capital, Madrid. Bessent and Greer discussed the economic relations between the world's two largest economies with Chinese Vice Premier He Lifeng and Trade Representative Li Chenggang. According to Bessent, a comprehensive agreement is still pending. He indicated that another round of negotiations could take place in the coming weeks.
The government in Beijing has long resisted a sale of TikTok. The sticking point is the algorithm that recommends additional videos to users. This algorithm is considered the heart of the platform and a high-tech product subject to Chinese export restrictions. According to insiders, however, the ByteDance subsidiary is working on a separate app for US users. This app will be equipped with its own recommendation software.
Threat to national security?
TikTok and ByteDance are suspected of espionage in numerous countries due to their proximity to the government in Beijing. Both the companies and the Chinese authorities have repeatedly denied these allegations.
Nevertheless, last year the US Congress passed a law by a large majority requiring ByteDance to sell TikTok USA. Trump, who had called for a ban on the platform, which is particularly popular with young people, during his first term in office, repeatedly extended the deadline for the mandatory sale. TikTok played a key role in his 2024 re-election campaign. The White House now also operates an official channel on it.
Possible takeover by US company is getting closer
Software giants Microsoft and Oracle, among others, have been mentioned as potential TikTok buyers in recent months. According to insiders, the US government recently favored a takeover by US financial investors such as KKR, Susquehanna, and General Atlantic, some of which already hold stakes in ByteDance.
Parallel to the negotiations in Madrid, the Chinese antitrust authority SAMR announced on Monday that, according to initial investigations, the US chip company Nvidia had likely violated antitrust laws. Industry experts view the proceedings as retaliation for US restrictions on high-tech exports to the People's Republic. The US is seeking to slow China's technological and military rise. Nvidia is the world's largest supplier of high-performance processors for artificial intelligence (AI). Bessent criticized the timing of Nvidia's announcement as unfortunate.
