US, China reach framework deal on TikTok; Trump and Xi to speak on Friday

The US and China reached a framework deal on short-video app TikTok as part of broader talks on tariffs and economic policy that concluded in Madrid on Monday, US Treasury Secretary Scott Bessent said.

A deal would allow TikTok to keep operating in the United States where it has faced being shut down as soon as 17 September unless it moved to US ownership.

"The framework is for a switch to a US-controlled ownership," Bessent told reporters in Madrid at the conclusion of two days of talks, without providing further details.

There could be a short extension of the 17 September deadline for TikTok to finalise the framework deal, US Trade Representative Jamieson Greer said.

"It would not have been extended without a framework," Bessent said.

US President Donald Trump and his counterpart Xi Jinping would speak on Friday, Bessent said.

The US had earlier on Monday threatened to go ahead with a ban on the popular social media app unless China dropped demands for concessions on reduced tariffs and technological restrictions as part of a divestiture deal.

Bessent said there would probably be another round of talks in the coming days to discuss trade and economic policy issues.

The two sides also discussed ways to cooperate on money laundering and on curbing the illicit fentanyl trade, he said.

Meanwhile, US President Donald Trump said the trade talks with China had gone very well.

"The big Trade Meeting in Europe between the United States of America and China has gone VERY WELL! It will be concluding shortly," Trump wrote.

"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! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!"