Framework Deal Sets Stage for Ownership Shift
A tentative agreement between the U.S. and China over the fate of TikTok may pave the way for U.S.-controlled ownership of the platform. Treasury Secretary Scott Bessent confirmed from U.S.-China talks in Madrid that a “framework” deal has been reached, setting the stage for further negotiations.
“It’s between two private parties, but the commercial terms have been agreed upon,” Bessent said.
U.S.-China Leaders to Finalize Terms Friday
The U.S. President and Chinese President Xi Jinping are scheduled to meet Friday to finalize the agreement. The arrangement is expected to allow TikTok to continue operating in the U.S. under new ownership, resolving national security concerns without triggering a platform ban.
Regulatory Pressures and Legal Deadline
TikTok’s parent company ByteDance is up against a firm September 17 deadline to divest the app’s U.S. operations or face a potential shutdown. While U.S. Trade Representative Jamieson Greer indicated a short extension may be needed to finalize terms, further delays are unlikely.
Congress previously passed legislation barring Apple and Google from listing TikTok in their app stores due to its classification as a “foreign adversary-controlled application.”
Executive orders have extended the deadline multiple times, with the most recent order signed in June.
Bidding War Builds Behind the Scenes
Several high-profile U.S. investors have expressed interest in acquiring TikTok’s U.S. operations, including Oracle Chairman Larry Ellison and Tesla CEO Elon Musk. CNBC also reported acquisition bids from Perplexity AI and Frank McCourt’s Project Liberty group.
China Responds Amid Trade Tensions
China’s chief negotiator Li Chenggang confirmed the framework agreement and called on the U.S. to stop suppressing Chinese companies. The comment underscores ongoing trade tension between the two nations, which has escalated through tariffs and export controls.
Catch up on our previous story: Microsoft and OpenAI Outline New Deal
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Final Take: TikTok’s Future Hinges on Upcoming Summit
A framework deal is in place, but TikTok’s U.S. future will likely be determined by this week’s high-level summit between U.S. and Chinese leaders. With regulatory deadlines looming and national security in focus, the next move could reshape global tech governance.
Disclaimer
This article is for informational purposes only and does not constitute investment or legal advice. Consult with a qualified advisor before making any financial decisions.
