Framework for TikTok Transfer Discussed

Treasury Secretary Scott Bessent announced on Monday that a “framework” has been established regarding contracts to transfer TikTok to US ownership.

President Trump expressed optimism about the negotiations on social media, indicating that details would soon be finalized in discussions with China’s President Xi Jinping, whom Bessent plans to talk to on Friday.

“The large European trade conference between the US and China has gone very well! It’ll wrap up shortly,” Trump tweeted.

Bessent mentioned that an agreement has been reached regarding a “specific” company that aimed to address the interests of American youth, and he noted that they seem pleased.

As part of broader trade talks this week in Madrid, US and Chinese delegations are discussing the sale of TikTok by its Chinese owners.

“We’ve been very focused on TikTok, ensuring that the deal respects both US national security and is fair to the Chinese,” Bessent stated.

He also added that the US wanted to guarantee a fair investment climate for the Chinese in America, while prioritizing national security.

According to a Reuters report, the US was prepared to advocate for a TikTok ban if China did not reduce its demands regarding tariffs and technical restrictions.

The White House did not quickly reply to requests for comments.

Bessent expressed concerns, saying, “Our Chinese counterparts are asking some rather challenging questions.” He emphasized, “We will not compromise national security for social media apps.”

Simultaneously, Beijing accused the US of “bullying” following allegations that it threatened import tariffs on allies for buying Russian oil.

China described this as “unilateral bullying” that might disrupt global trade and supply chain stability.

US and Chinese officials are scheduled to meet again in Madrid on Sunday to further discuss trade issues.

Back in June, Trump had extended the deadline for TikTok’s shift to US ownership by another 90 days. The app, which has 170 million users in the US, faced a temporary blackout in January.

American lawmakers have been considering banning the app over national security worries, claiming it serves as a tool for spying and propaganda from the Chinese government.

The last meeting of the delegations occurred in July in Stockholm, where they decided to continue the trade ceasefire and resumed rare earth exports from China to the US.

Meanwhile, the Supreme Court is currently examining a lawsuit that could potentially invalidate most of Trump’s tariffs.

On another front, China accused US company Nvidia of breaching its anti-monopoly laws.