The ongoing discussions regarding the future of TikTok‘s American operations may soon draw to a conclusion, as U.S. President Donald Trump is expecting to finalise its fate during a call with Chinese President Xi Jinping later this week.
Trump posted on his Truth Social network that trade talks between the countries “went very well”, adding that a deal was reached involving “a ‘certain’ company that young people in our country very much wanted to save”. He added that he would speak with Xi on Friday and described the US-China relationship as “very strong.”
According to the Financial Times (FT), treasury secretary Scott Bessent, who led the US delegation in Madrid, told reporters that a framework deal with TikTok had been reached. He reportedly confirmed the plan involves transferring TikTok to US-controlled ownership, adding” “I’m not going to get ahead of the leaders’ call on Friday. We have a framework. They’ll have to confirm the deal”.
Moving to US ownership would address the Trump administration’s long-standing national security concerns while allowing the short-video app to continue operating in the country. The update comes after US commerce secretary Howard Lutnick issued a warning in July that TikTok could be blocked across the country unless China agreed to transfer control, including the platform’s algorithm, to a US owner.
The US government has repeatedly delayed its deadline for ByteDance, TikTok’s parent company, to divest its US operations or face a nationwide ban. Since January, the deadline has been postponed three times, with the latest set for Wednesday. US trade representative Jamieson Greer said a further extension might be required to finalise Monday’s agreement but indicated that no additional extensions are planned, FT reported.
Since Trump’s renewed agenda to save TikTok, a host of tech players including Perplexity AI, Amazon and Microsoft have reportedly proposed bids to acquire its US operations.
Source: Mobile World Live
Image Credit: TikTok
