A potential breakthrough deal signals TikTok may remain in the U.S., bringing long-awaited clarity for advertisers, marketers, and millions of creators who’ve been stuck in limbo.
Treasury Secretary Scott Bessent confirmed Monday that Washington and Beijing reached a “framework” agreement over TikTok’s future, a move that could pave the way for U.S.-controlled ownership of the popular video app.
The agreement includes licensing ByteDance’s Chinese algorithm and intellectual property.
“It’s between two private parties, but the commercial terms have been agreed upon,” Bessent said during U.S.–China trade talks in Madrid.
Presidents Donald Trump and Xi Jinping are scheduled to meet on Friday to review the terms.
TikTok’s parent company ByteDance faces a September 17 deadline to divest or face a U.S. ban.
Oracle is involved in the proposed deal, according to CBS News.
Why it matters
If finalized, the deal could resolve one of the most high-profile U.S.–China tech clashes of the past decade. Trump has repeatedly said TikTok cannot remain in the U.S. without American ownership. For brands and creators, a resolution would mean stability after months of uncertainty around campaigns, sponsorships, and platform access.
The details
Trump wrote in a Truth Social post that an agreement was reached with a company “young people in our Country very much wanted to save.”
U.S. Trade Representative Jamieson Greer noted the deadline might be extended briefly to secure signatures, but emphasized this would not be a rolling delay.
The framework follows a series of executive order extensions that postponed TikTok’s shutdown.
Between the lines
Congress last year barred Apple and Google from hosting TikTok in U.S. app stores, calling it a “foreign adversary-controlled application.”
Several potential American buyers have been floated, including Oracle’s Larry Ellison, Tesla’s Elon Musk, AI firm Perplexity, and Frank McCourt’s Project Liberty.
Still, licensing ByteDance’s algorithm leaves unanswered questions: would U.S. ownership truly mean full control, or would Beijing retain influence through IP rights? These are the kinds of concerns lawmakers and cybersecurity analysts continue to raise.
What’s next
All eyes now turn to the Trump–Xi meeting. If the framework becomes a binding deal, it could prevent TikTok’s forced removal from the U.S. market. If not, one of the most widely used social platforms among American youth could face a historic shutdown.
